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 $ 1,500,000 730,000 770,000 470,000 $ 300,000 $ 937,500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 580,000 70% of sales $ 319,000 The company's minimum required rate of return is 10%. Required: 1. What Is last year's margin? Margin 20% O 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 $ 1,500,000 730,000 770,000 470,000 $ 300,000 $ 937,500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 580,000 700 of sales $ 319.000 The company's minimum required rate of return is 10% 2. What is last year's turnover? (Round your answer to 1 decimal place.) Turnover 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 $ 1,500,000 730,000 770,000 470,000 $ 300,000 $ 937,500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Tixed expenses $ 580,000 701 of sales $ 319,000 The company's minimum required rate of return is 10% 4. What is the margin related to this year's investment opportunity? Margin 15% 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 $ 1,500,000 730,000 770,000 470,000 5 300,000 $ 937,500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 580,000 700 of sales $ 319,000 The company's minimum required rate of return is 10% 5. What is the turnover related to this year's investment opportunity? (Round your answer to 1 decimal place.) Turnover 1.6 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 $ 1,500,000 730,000 770,000 470,000 $ 300,000 $ 937,500 At the beginning of this year, the company has a $362,500 Investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 580,000 701 of salen $ 319,000 The company's minimum required rate of return is 10% 6. What is the rol related to this year's Investment opportunity? (Do not round Intermediate calculations.) ROL % O 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 $ 1,500,000 730,000 770,000 470,000 5 300,000 S 937,500 At the beginning of this year, the company has a $362,500 Investment opportunity with the following cost and revenue characteristics: sales Contribution margin ratio Fixed expenses $ 580,000 701 of sales $319,000 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 (i.e., 0.1234 should be entered as 12,3).) Margin 18.6% O 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 $ 1,500,000 730,000 770,000 470,000 $ 300,000 $ 937,500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Salos Contribution margin ratio Fixed expensen $ 580,000 701 of sales $ 319,000 The company's minimum required rate of return is 10% 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 0 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 $ 1,500,000 730,000 770,000 470,000 $ 300,000 $ 937,500 At the beginning of this year, the company has a $362,500 Investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 580,000 700 ot sales $ 319,000 The company's minimum required rate of return is 10% 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 O 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 $ 1,500,000 730,000 770,000 470,000 $ 300,000 $ 937,500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 580,000 708 of sales $ 319,000 The company's minimum required rate of return is 10%. 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 (.e., 0.1234 should be considered as 12.3).) ROI % 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 asseta $ 1,500,000 730,000 770,000 470,000 S 300,000 $ 937,500 At the beginning of this year, the company has a $362,500 Investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Yixed expenses $ 580,000 700 of sales $ 319,000 The company's minimum required rate of return is 10% 10-a. If Westerville's chief executive officer will earn a bonus only if her Rol from this year exceeds her ROI from last year, would she pursue the investment opportunity? Yes O No 10-b. Would the owners of the company want her to pursue the investment opportunity? Yes O No 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 $ 1,500,000 730,000 770,000 470,000 $ 300,000 $ 937,500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 580,000 708 of sales $ 319,000 The company's minimum required rate of return is 10% 11. What is last year's residual income? Residual income 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 an eta $ 1,500,000 730,000 770,000 470,000 $ 300,000 $ 937,500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 580,000 70% of sales $ 319,000 The company's minimum required rate of return is 10% 12. What is the residual income of this year's Investment opportunity? Residual income O 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 $1,500,000 730,000 770,000 470.000 $ 300,000 937,500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 580,000 700 of sales $ 319.000 The company's minimum required rate of return is 10% 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 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 $ 1,500,000 730,000 770,000 470,000 $ 300,000 $ 937,500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 580,000 700 of sales $ 319,000 The company's minimum required rate of return is 10%. 14. If Westerville's chief executive officer will earn a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the investment opportunity? Yes O No O 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 $ 1,500,000 730,000 770,000 470.000 $ 300,000 937,500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Tixed expenses 500,000 705 of sale $319,000 The company's minimum required rate of return is 10% 15-0. Assume that the contribution margin ratio of the investment opportunity was 60% Instead of 70%. If Westerville's Chief Executive Investment opportunity? Officer will earn a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the Yes O NO 15-b. Would the owners of the company want her to pursue the investment opportunity? Yes No