Required information

Skip to question

$[$The following information applies to the questions displayed below.$]$

Westerville Company reported the following results from last year$$s operations:

Sales $ $1,500,000$

Variable expenses $730,000$

Contribution margin $770,000$

Fixed expenses $470,000$

Net operating income $ $300,000$

Average operating assets $ $937,500$

At the beginning of this year, the company has a $$362,500$ investment opportunity with the following cost and revenue characteristics:

Sales $ $580,000$

Contribution margin ratio $70\%$ of sales

Fixed expenses $ $319,000$

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.$)$