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CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear...

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Accounting

CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below:

Sales $ 2,760,000
Net operating income $ 110,400
Average operating assets $ 920,000

The following questions are to be considered independently.

2. The entrepreneur who founded the company is convinced that sales will increase next year by 60% and that net operating income will increase by 300%, with no increase in average operating assets. What would be the companys ROI? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,850,000 increase in sales, requiring a $232,500 increase in average operating assets, with a resulting $292,975 increase in net operating income. What would be the companys ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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