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Craycraft Inc. reported the following results from last year's operations: Sales $12,600,000 Variable expenses 9,380,000 Contribution margin 3,220,000 Fixed expenses 2,716,000 Net operating income $504,000

Craycraft Inc. reported the following results from last year's operations:

Sales

$12,600,000

Variable expenses

9,380,000

Contribution margin

3,220,000

Fixed expenses

2,716,000

Net operating income

$504,000

Average operating assets

$7,000,000

At the beginning of this year, the company has a $800,000 investment opportunity with the following characteristics:

Sales

$560,000

Contribution margin ratio

50%

of sales

Fixed expenses

$246,400

Required:

1. A. What was last year's margin? (Round to the nearest 0.1%.)

B- What was last year's turnover? (Round to the nearest 0.01.)

C- What was last year's return on investment (ROI)? (Round to the nearest 0.1%.)

D- If the company pursues the investment opportunity and otherwise performs the same as last year, what will be the overall margin this year? (Round to the nearest 0.1%.)

E- If the company pursues the investment opportunity and otherwise performs the same as last year, what will be the overall turnover this year? (Round to the nearest 0.01.)

F- If the company pursues the investment opportunity and otherwise performs the same as last year, what will be the overall ROI will this year? (Round to the nearest 0.1%.)

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