Question
5. What is the turnover related to this years investment opportunity? (Round your answer to 1 decimal place.) 6. What is the ROI related to
5. What is the turnover related to this years investment opportunity? (Round your answer to 1 decimal place.)
6. What is the ROI related to this years investment opportunity?
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)
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.)
Required information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales 1,400,000 Variable expenses Contribution margin Fixed expenses 720,000 680,000 470,000 Net operating income 210,000 875,000 Average operating assets At the beginning of this year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics: $ 560,000 Sales Contribution margin ratio Fixed expenses 70% of sales 336,000 The company's minimum required rate of return is 15%
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