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#5 #6 #7 three questions in 1 please help Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed
#5 #6 #7 three questions in 1 please help
Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,500,000 690,000 810,000 435,000 $ 375,000 $ 1,250,000 At the beginning of this year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 420,000 70% of sales $ 252,000 The company's minimum required rate of return is 10% 5. What is the turnover related to this year's investment opportunity? (Round your answer to 1 decimal place.) Turnover Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $1,500,000 690,000 810,000 435,000 $ 375,000 $ 1,250,000 At the beginning of this year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 420,000 70% of sales $ 252,000 The company's minimum required rate of return is 10% 6. What is the ROI related to this year's investment opportunity? (Do not round intermediate calculations.) ROI % Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $1,500,000 690,000 810,000 435,000 $ 375,000 $ 1,250,000 At the beginning of this year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 420,000 70% of sales $ 252,000 The company's minimum required rate of return is 10% 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., 0.1234 should be entered as 12.3).) Margin % Step by Step Solution
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