Question
a) Last year's return on investment (ROI) was (enter as O.XXX): b) The ROI for this year's investment opportunity considered alone is (enter as O.XXX):
a) Last year's return on investment (ROI) was (enter as O.XXX): b) The ROI for this year's investment opportunity considered alone is (enter as O.XXX): c) Last year's residual income (enter as $X,XXX): d) The residual income for this year's investment opportunity when considered alone is (enter as $X,XXX: e) If the company pursues the investment opportunity, this year's combined residual income for the entire company will be (enter as $X,XXX: Frisbee Golf Inc. reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 4,200,000 3,286,667 913,333 535,333 $ 378,000 $ 2,200,000 Average operating assets At the beginning of this year, the company has a $650,000 investment opportunity with the following characteristics: Sales Contribution margin ratio Fixed expenses $ 1,020,000 30% of sales $ 204,000 The company's minimum required rate of return is 20%
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