Question
1-What is the ROI related to this years investment opportunity? 2-If the company pursues the investment opportunity and otherwise performs the same as last year,
1-What is the ROI related to this years investment opportunity?
2-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%))
3-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.)
4-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 .1234 should be entered as 12.3%))
5-If Westervilles chief executive officer will earn a bonus only if her ROI from this year exceeds her ROI from last year, would she pursue the investment opportunity? Would the owners of the company want her to pursue the investment opportunity?
could you please solve these with expanation and steps for each Q
The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations 1,800,000 435,000 1,365,000 1,005,000 360,000 1,200,000 Sales Variable expenses ariable expenses Contribution margin Fixed expenses Net operating income Average operating assets This year, the company has a S300,000 investment opportunity with the following cost and revenue characteristics Sales Contribution margin ratio Fixed expenses 360,000 70 %of sales 216,000 The company's minimum required rate of return is 10%
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