Reference no: EM132797992
Question - Dingdong Corporation provides digital doorbells and doorbell webcams. Data concerning the most recent year follow:
Sales $3,000,000
Net operating income 450,000
Average operating assets 1,800,000
Consider each question below independently. Carry out all computations to two decimal places.
1. Compute the company's ROI.
2. The entrepreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income will increase as a result by 200%, with no increase in average operating assets. What would be the company's ROI?
3. The CEO believes a more realistic scenario would be a $1,000,000 increase in sales, requiring a $200,000 increase in average operating assets, with a resulting $150,000 increase in net operating income. What would be the company's ROI in this scenario?