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Help calculating company's turnover Westerville Company reported the following results from last years operations: Sales $ 1,750,000 Variable expenses 520,000 Contribution margin 1,230,000 Fixed expenses

Help calculating company's turnover

Westerville Company reported the following results from last years operations:

Sales $ 1,750,000
Variable expenses 520,000
Contribution margin 1,230,000
Fixed expenses 880,000
Net operating income $ 350,000
Average operating assets $ 875,000

At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics:

Sales $ 320,000
Contribution margin ratio 60 % of sales
Fixed expenses $ 128,000

The companys minimum required rate of return is 20%.

8. If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year?

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