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Please show all steps..thank you Westerville Company reported the following results from last years operations: Sales $ 1,400,000 Variable expenses 510,000 Contribution margin 890,000 Fixed

Please show all steps..thank you

Westerville Company reported the following results from last years operations:

Sales $ 1,400,000
Variable expenses 510,000
Contribution margin 890,000
Fixed expenses 610,000
Net operating income $ 280,000
Average operating assets $ 875,000

This year the company has a $175,000 investment opportunity with the following cost and revenue characteristics:

Sales $ 280,000
Contribution margin ratio 50 % of sales
Fixed expenses $ 98,000
The companys minimum required rate of return is 15%.
Required:
A.

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.)

B.

If the company pursues the investment opportunity and otherwise performs the same as last year, what Margin will it earn this year? (Round your answer to 2 decimal places.)

Turnover

Margin

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