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5. What is the turnover related to this years investment opportunity? 6. What is the ROI related to this years investment opportunity? 7. If the
5. What is the turnover related to this years investment opportunity?
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?
8. If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year?
Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,800,000 435,000 1,365,000 1,005,000 $ 360,000 $ 1,200,000 At the beginning of this year, the company has a $300,000 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%Step by Step Solution
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