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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 $ 1,500,000 530,000 970,000 670,000 Net operating income Average operating assets. $ 300,000 $ 937,500 At the beginning of this year, the company has a $212,500 Investment opportunity with the following cost and revenue characteristics: Sales $ 340,000 Contribution margin ratio Fixed expenses 70 % of sales $ 187,000 The company's minimum required rate of return is 10%. 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 (l.e., 0.1234 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.) Turnover 1.60 9. If the company pursues the Investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (Do not round Intermediate calculations. Round your percentage answer to 1 decimal place (l.e., 0.1234 should be entered as 12.3).) ROI 96 11. What Is last year's residual Income? Residual income 12. What is the residual Income of this year's Investment opportunity? Residual income 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
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