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Westerville Company reported the following results from last years operations:

Sales	$	2,000,000
Variable expenses		640,000
Contribution margin		1,360,000
Fixed expenses		860,000
Net operating income	$	500,000
Average operating assets	$	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	$	400,000
Contribution margin ratio		70	% of sales
Fixed expenses	$	220,000

The companys minimum required rate of return is 10%.

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

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

Westerville Company reported the following results from last years operations:

Sales	$	2,000,000
Variable expenses		640,000
Contribution margin		1,360,000
Fixed expenses		860,000
Net operating income	$	500,000
Average operating assets	$	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	$	400,000
Contribution margin ratio		70	% of sales
Fixed expenses	$	220,000

The companys minimum required rate of return is 10%.

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

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

Westerville Company reported the following results from last years operations:

Sales	$	2,000,000
Variable expenses		640,000
Contribution margin		1,360,000
Fixed expenses		860,000
Net operating income	$	500,000
Average operating assets	$	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	$	400,000
Contribution margin ratio		70	% of sales
Fixed expenses	$	220,000

The companys minimum required rate of return is 10%.

6. What is the ROI related to this years investment opportunity?