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Required information [The following information applies to the questions displayed below] Westerville Company reported the following results from last year's operations: At the beginning of
Required information [The following information applies to the questions displayed below] Westerville Company reported the following results from last year's operations: At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics: The company's minimum required rate of return is 10%. 1. What is last year's margin? 15-8. Assume that the contribution margin ratio of the investment opporturity was 50% instead of 60%. If Westervile's Chief Execultive CAlicer wil eam a bonus anly if her rasidual Income from this yoar ewcoeds her rasidual Income from last yoor, would she pursue the imestmem eppottunity? Margin 2. What is last year's turnover? 15-b. Would the oweners of the company want her to fursie the investment opeortunity? 3. What is last year's return on investment (ROI)? ROI 4. What is the margin related to this year's investment opportunity? Margin 5. What is the turnover related to this year's investment opportunity? 6. What is the ROI related to this year's investment opportunity? ROI 7. If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year? (Round your percentage answer to 1 decimal place (i.e. 1234 should be entered as 12.3)) Margin 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.) 9. If the compery pursues the investment apportunity and otherwise performs the same as last year, what ROI will it eam this year? (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3\%.)) 10-a. If Wiestervilie's chlef executtie officer wilt earn a bonus only if her ROA from this year exceeds her ROl from last year. would she pursue the investment opportunity? 14. If Westervile's chief enecifve officer wil esm a bonus orly if her residual income dom this year eacests her residual ncome from last yeas, would ste parsae tie inverstment mppoturity? 10.b. Would the cwners of the company want her to pursue the investment opportunity? 12. What is the residual income of this year's investment opportunity? Yes No 11. What is last year's residual income? 13. If the company pursues the investment opportunity Bnd otherwise pertoms the same as last year, what resioual income will it earn this year
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