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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: Sales Variable expenses Contribution
Required information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,500,000 690,000 810,000 435,000 $ 375,000 $ 1,250,000 At the beginning of this year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 420,000 70 % of sales $ 252,000 The company's minimum required rate of return is 10%. Required: 1. What is last year's margin? Margin % 2. What is last year's turnover? (Round your answer to 1 decimal place.) Turnover 3. What is last year's return on investment (ROI)? ROI % 5. What is the turnover related to this year's investment opportunity? (Round your answer to 1 decimal place.) Turnover 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 %
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