Question
Required information Skip to question [The following information applies to the questions displayed below.] Westerville Company reported the following results from last years operations: Sales
Required information
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[The following information applies to the questions displayed below.]
Westerville Company reported the following results from last years operations:
| Sales | $ 1,750,000 |
| Variable expenses | 520,000 |
| Contribution margin | 1,230,000 |
| Fixed expenses | 880,000 |
| Net operating income | $ 350,000 |
| Average operating assets | $ 875,000 |
At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics:
| Sales | $ 320,000 |
|
| Contribution margin ratio | 60 | % of sales |
| Fixed expenses | $ 128,000 |
|
The companys minimum required rate of return is 20%.
What is last years margin?
What is last years turnover?
What is last years return on investment (ROI)?
What is the margin related to this years investment opportunity?
What is the turnover related to this years investment opportunity?
What is the ROI related to this years investment opportunity?
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Issues In Finance And Monetary Policy
Authors: J. McCombie ,C. RodrĂguez González
1st Edition
0230007988,0230801498
