Question
5. What is the turnover related to this years investment opportunity? (Round your answer to 2 decimal places.) 6. What is the ROI related to
5. What is the turnover related to this years investment opportunity? (Round your answer to 2 decimal places.)
6. What is the ROI related to this years investment opportunity? (Do not round intermediate calculations.Round your answer to the nearest whole percent.)
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).)
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.l Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses $1,000,000 300,000 700,000 500,000 $ 200,000 Net operating income Average operating assets 625,000 At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 200,000 60 % of sales $ 90,000 The company's minimum required rate of return is 15%
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