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What would be the company roi in this scenario

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Reference no: EM132517965

Roomy Company provides business to business service on the internet. Data concerning the most recent year appear below:

Sales $ 9,000,000

Net Operating Income $ 900,000

Average operating Assets $ 3,200,000

Required: Consider each 3 questions below independently. Carry out all computation to two decimal places.

Question 1: Compute the company's return of investment (ROI)

Question 2: The company founder is convinced that sales will increase next year by 150% and that net operating income will increase by 400%, with no increase in average operating assets. What would be the company's ROI?

Question 3: The CFO of the company believes a more realistic scenario would be a $2 million increase in sales, requiring an $800,000 increase in average operating assets, with a resulting $250,000 increase in net operating income. What would be the company's ROI in this scenario?

Reference no: EM132517965

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