! Required information [The following information applies to the questions displayed below) Westerville Company reported the following results from last year's operations 15 Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,200,000 320,000 880,000 640.000 $ 240,000 $ 600,000 1:29:46 Book At the beginning of this year, the company has a $150,000 investment opportunity with the following cost and revenue characteristics: Paint Sales Contribution margin ratio Fixed expenses $ 240,000 50 of sales $ 84,000 ferences The company's minimum required rate of return is 15% 9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (Round your percentage answer to 1 decimal place (le, 0.1234 should be considered as 12.3%.)) ROL % 10 of 15 Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating an eta $ 1,200,000 320,000 880,000 640,000 5 240,000 600,000 02:29 33 es At the beglnning of this year, the company has a $150,000 investment opportunity with the following cost and revenue characteristics Paint Sales Contribution margin ratio Fixed expenses $ 240,000 50 of sales $ 84,000 References The company's minimum required rate of return is 15% 10-a. If Westerville's chief executive officer will earn a bonus only if her Rol from this year exceeds her Rol from last year, would she pursue the investment opportunity? Yes No 10-b. Would the owners of the company want her to 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 $ 1,200,000 320,000 880,000 640,000 $ 240,000 $ 600,000 -17 At the beginning of this year, the company has a $150,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Tlxed expenses $ 240,000 50 of sales $4.000 3 nces The company's minimum required rate of return is 15% 11. What is last year's residual income? Residual income $ 163,500 Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,200,000 320,000 880,000 640,000 $ 240,000 $ 600,000 At the beginning of this year, the company has a $150,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 240,000 50 of sales $ 84,000 The company's minimum required rate of return is 15%, 12. What is the residual income of this year's investment opportunity? Residual income [The following information applies to the questions displayed below) Westerville Company reported the following results from last year's operations: 15 Sales Variable expenses Contribution margin Fixed expenses Net operating Incone Average operating annet $ 1,200,000 320,000 880,000 640,000 $ 240,000 $ 600,000 10:58 At the beginning of this year, the company has a $150,000 investment opportunity with the following cost and revenue characteristics Sales Contribution margin ratio Fixed expenses 0.240,000 50 of sales $ 84,000 rences The company's minimum required rate of return is 15% 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 OPH Westerville Company reported the following results from last year's operations: of 15 Sales Variable expenses Contribution margin Tixed expenses Net operating income Average operating assets $1,200,000 320,000 880,000 640,000 240.000 5 600,000 2:28.49 Book At the beginning of this year, the company has a $150,000 investment opportunity with the following cost and revenue characteristics PO Contribution margin ratio Fixed expenses $ 240,000 50 ot sales 5 14.000 Reference The company's minimum required rate of return is 15% 14. Westerville's chief executive officer will eam a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the investment opportunity? - Yes No Westervilhe Company reported the following results from last year's operations Sales Variable Contribution Fidex Nerepeatine in $ 1.200.000 320,000 339.000 50.000 240.000 500.000 At the beginning of this year, the company has a $150.000 uvestment opportunity with the following cost and revenue characteristics Sales Corinalis N0.000 Sot sa . The comany's mymum required one of retums 15 15 a. Assume that the contution mangin ratio of the member opportunity was 90% pas or on Western Chief Executive Omeer waa bonus on the rest come from this yeux exceeds the real income from last year when the Yos NO is a Wees the owner of the company want her bo wore he went to
