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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 1,300,000 Variable expenses
Required information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales 1,300,000 Variable expenses Contribution margin Fixed expenses 440,000 860,000 600,000 $ 260,000 Net operating income $ 812,500 Average operating assets At the beginning of this year, the company has a $162,500 investment opportunity with the following cost and revenue characteristics: Sales 260,000 80% of sales Contribution margin ratio Fixed expenses 182,000 The company's minimum required rate of return is 15% +e 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 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 (i.e., 0.1234 should be considered as 12.3%.) ROI % 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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