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please answer all questions attached, not just the first one. thank you:) Westerville Company reported the following results from last year's operations Sales Variable expenses
please answer all questions attached, not just the first one. thank you:)
Westerville Company reported the following results from last year's operations Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 2,000,000 640,000 1,360,000 860,000 $ 500,000 $ 1,250,000 At the beginning of this year, the company has a $250,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 400,000 70% of sales $ 220,000 The company's minimum required rate of return is 10%. 3. What is last year's return on investment (ROI)? (Round your intermediate calculations to 1 decimal place.) ROI % Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 2,000,000 640,000 1,360,000 860,000 $ 500,000 $ 1,250,000 At the beginning of this year, the company has a $250,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 400,000 70% of sales $ 220,000 The company's minimum required rate of return is 10% 4. What is the margin related to this year's investment opportunity? Margin % Westerville Company reported the following results from last year's operations. Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 2,000,000 640,000 1,360,000 860,000 $ 500,000 $ 1,250,000 At the beginning of this year, the company has a $250,000 inves characteristics ment opportunity with the following cost and revenue Sales Contribution margin ratio Fixed expenses $ 400,000 70% of sales $ 220,000 The company's minimum required rate of return is 10%. 5. What is the turnover related to this year's investment opportunity? (Round your answer to 1 decimal place.) Turnover Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 2,000,000 640,000 1,360,000 860,000 $ 500,000 $ 1,250,000 At the beginning of this year, the company has a $250,000 investment opportunity with the following cost and revenue characteristics Sales Contribution margin ratio Fixed expenses $ 400,000 70% of sales $ 220,000 The company's minimum required rate of return is 10% 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.) Turnover Westerville Company reported the following results from last year's operations Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 2,000,000 640,000 1,360,000 860,000 $ 500,000 $ 1,250,000 At the beginning of this year, the company has a $250,000 investment opportunity with the following cost and revenue characteristics Sales Contribution margin ratio Fixed expenses $ 400,000 70% of sales $ 220,000 The company's minimum required rate of return is 10% 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., 0.1234 should be entered os 12.3).) Margin % Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 2,000,000 640,000 1,360,000 860,000 S 500,000 $ 1,250,000 At the beginning of this year, the company has a $250,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 400,000 70% of sales $ 220,000 The company's minimum required rate of return is 10% 10-a. If Westerville's 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? O Yes O No 10-b. Would the owners of the company want her to pursue the investment opportunity? Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 2,000,000 640,000 1,360,000 860,000 s 500,000 $1,250,000 At the beginning of this year, the company has a $250,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 400,000 70% of sales $ 220,000 The company's minimum required rate of return is 10% 11. What is last year's residual income? Residual income Westerville Company reported the following results from last year's operations Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 2,000,000 640,000 1, 360,000 860,000 $ 500,000 $ 1,250,000 At the beginning of this year, the company has a $250,000 investment opportunity with the following cost and revenue characteristics Sales Contribution margin ratio Fixed expenses $ 400,000 70% of sales $ 220,000 The company's minimum required rate of return is 10%. 12. What is the residual income of this year's investment opportunity? Residual income Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 2,000,000 640,000 1,360,000 860,000 $ 500,000 $1,250,000 At the beginning of this year, the company has a $250,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 400,000 70% of sales $ 220,000 The company's minimum required rate of return is 10% 13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year? Residual income Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 2,000,000 640,000 1,360,000 860,000 $ 500,000 $ 1,250,000 At the beginning of this year, the company has a $250,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 400,000 70% of sales $ 220,000 The company's minimum required rate of return is 10%. 14. If Westerville's chief executive officer will earn a bonus only if her residual income from this year exceeds her residual income last year, would she pursue the investment opportunity? Yes O No . Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 2,000,000 640,000 1,360,000 860,000 $ 500,000 $ 1,250,000 At the beginning of this year, the company has a $250,000 investment opportunity with the following cost and reven characteristics Sales Contribution margin ratio Fixed expenses $ 400,000 70% of sales $ 220,000 The company's minimum required rate of return is 10%. 15-a. Assume that the contribution margin ratio of the investment opportunity was 60% instead of 70%. If Westerville's Chief Officer will earn a bonus only if her residual income from this year exceeds her residual income from last year, would she pur investment opportunity? Yes . 15-b. Would the owners of the company want her to pursue the investment opportunity? O Yes O No
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