Question: Safari File Edit View History Bookmarks Window Help 73% * :)) Sat Jun 30 4:49 PM Alex C E ezto.mneducation.com Home - alamo.edu Chapter 10


Safari File Edit View History Bookmarks Window Help 73% * :)) Sat Jun 30 4:49 PM Alex C E ezto.mneducation.com Home - alamo.edu Chapter 10 Exercises value: 11.11 points Kaler Company has sales of $1,390,000, cost of goods sold of $780,000, other operating expenses of $193,000, average invested assets of $4,300,000, and a hurdle rate of 12 percent. 1. Determine Kaler's retun on investment (ROI), investment turnover, profit margin, and residual income. (Do not round your intermediate calculations. Enter your Rl and Profit Margin answer to the nearest whole percentage, (Le., 0.1234 should be entered as 12%). Round your Investment Turnover answers to 4 decimal place Return on Investment Investment Turnover Profit Margin Residual Income 2. Several possible changes that Kaler could face in the upcoming year follow. Determine each scenario's impact on Kaler's ROl and residual income. (Note: Treat each scenario independently. (Enter your ROI percentage answers to 2 decimal places, (i.e., 0.1234 should be entered as 12.34% a. Company sales and cost of goods sold increase by 15 percent Return on Investment Residual Income (Loss) b. Operating expenses increase by $82,000. afari.dmg 0
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