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I NEED ALL THE ANSWERS FROM 1-13. NO INCOMPLETE ANSWERS PLEASE Westerville Company reported the following results from last years operations: Sales $ 1,500,000 Variable

I NEED ALL THE ANSWERS FROM 1-13. NO INCOMPLETE ANSWERS PLEASE

Westerville Company reported the following results from last years operations:

Sales $ 1,500,000
Variable expenses 690,000
Contribution margin 810,000
Fixed expenses 435,000
Net operating income $ 375,000
Average operating assets $ 1,250,000

This year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics:

Sales $ 420,000
Contribution margin ratio 70 % of sales
Fixed expenses $ 252,000
The companys minimum required rate of return is 10%.

1.What is last years margin?

2.What is last years turnover? (Round your answer to 1 decimal place.)

3.What is last years return on investment (ROI)?

4.What is the margin related to this years investment opportunity?

5. What is the turnover related to this years investment opportunity? (Round your answer to 1 decimal place.)

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? (Round your percentage answer to 1 decimal place (i.e .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.)

9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%.))

10-a.

If Westervilles chief executive officer will earn a bonus only if her ROI from this year exceeds her ROI from last year, would she pursue the investment opportunity?

Yes

No

10-b.

Would the owners of the company want her to pursue the investment opportunity?

No

Yes

11. What is last years residual income?

12. What is the residual income of this years investment opportunity?

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

I NEED ALL THE ANSWERS FROM 1-13. NO INCOMPLETE ANSWERS PLEASE

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