AM. 119. Fanning Company calculated its return on investment as 10 percent. Sales are now $350,000, and the amount of total operatingassets is $370,000.Requireda. If expenses are reduced by $25,900 and sales remain unchanged, what return on investment will result?Note: Round your percentage answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).b. If both sales and expenses cannot be changed, what change in the amount of operating assets is required to achieve thesame result?Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.a. Return on investmentb. Operating assets must%by

The objective of the question is to calculate the new return on investment (ROI) if expenses are…

Answered: Fanning Company calculated its return…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter12: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 2STP

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