1 What is last years residual income eBook Resources eBook Compute residual income and understand its strengths and weaknesses eBook Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI Check my work 12 Required information 12 What is the residual income of this years investment opportunity eBook Resources eBook Compute residual income and understand its strengths and weaknesses eBook Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI Check my work 13 Required information 13 If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year Westerville Company reported the following results from last years operations Sales $ 1,400,000 Variable expenses 510,000 Contribution margin 890,000 Fixed expenses 610,000 Net operating income $ 280,000 Average operating assets $ 875,000 This year, the company has a $175,000 investment opportunity with the following cost and revenue characteristics Sales $ 280,000 Contribution margin ratio 50 of sales Fixed expenses $ 98,000 The companys minimum required rate of return is 15 7 Required information 7 If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year (Round your percentage answer to 1 decimal place (i e 1234 should be entered as 12 3)) eBook Resources eBook Compute residual income and understand its strengths and weaknesses eBook Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI Check my work 8 Required information 8 If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year (Round your answer to 2 decimal places ) eBook Resources eBook Compute residual income and understand its strengths and weaknesses eBook Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI Check my work 9 Required information 9 If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year (Round your percentage answer to 1 decimal place (i e , 0 1234 should be considered as 12 3 )) Garrison 15e Recheck 2014 12 29 eBook Resources eBook Compute residual income and understand its strengths and weaknesses eBook Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI Check my work

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1. What is last years residual income? eBook & Resources eBook: Compute residual income and understand its strengths and weaknesses.eBook: Compute return on investment (ROI)

1.	What is last years residual income?

eBook & Resources

eBook: Compute residual income and understand its strengths and weaknesses.eBook: Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.

Check my work

12.

Required information

12.	What is the residual income of this years investment opportunity?

eBook & Resources

eBook: Compute residual income and understand its strengths and weaknesses.eBook: Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.

Check my work

13.

Required information

13.	If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year?

Westerville Company reported the following results from last years operations:


Sales	$	1,400,000
Variable expenses		510,000

Contribution margin		890,000
Fixed expenses		610,000

Net operating income	$	280,000

Average operating assets	$	875,000

This year, the company has a $175,000 investment opportunity with the following cost and revenue characteristics:


Sales	$	280,000
Contribution margin ratio		50	% of sales
Fixed expenses	$	98,000

The companys minimum required rate of return is 15%.

Required information

7.	If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year? (Round your percentage answer to 1 decimal place (i.e .1234 should be entered as 12.3))

eBook & Resources

eBook: Compute residual income and understand its strengths and weaknesses.eBook: Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.

Check my work

Required information

8.	If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year? (Round your answer to 2 decimal places.)

eBook & Resources

eBook: Compute residual income and understand its strengths and weaknesses.eBook: Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.

Check my work

Required information

9.	If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%.))

Garrison 15e Recheck 2014-12-29

eBook & Resources

eBook: Compute residual income and understand its strengths and weaknesses.eBook: Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.

Check my work