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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
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 $ 1,600,000 700,000 Net operating income Average operating assets 900,000 660,000 $ 240,000 $1,000,000 At the beginning of this year, the company has a $325,000 investment opportunity with the following cost and revenue characteristics: Sales $520,000 Contribution margin ratio 70 % of sales Fixed expenses $ 312,000 The company's minimum required rate of return is 15%. 3. What is last year's return on investment (ROI)? (Round your intermediate calculations to 1 decimal place.) ROI Answer is complete but not entirely correct. 20.00 11. What is last year's residual income? Residual income 4. What is the margin related to this year's investment opportunity? Margin % 11. What is last year's residual income? Residual income
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