Required information The Foundational 15 (Algo) (LO10-1, LO10-2) The following information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: Sales $ 2,200,000 Variable expenses 660,000 Contribution margin 1,540,000 Fixed expenses 1,100,000 Net operating income $ 440,000 Average operating assets $ 1,375,000 At the beginning of this year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics Sales $ 440,000 Contribution margin ratio 60 of sales Fixed expenses $ 220,000 The company's minimum required rate of return is 15% Foundational 10-1 (Algo) Required: 1. What is lost year's margin? Margin O Required information The Foundational 15 (Algo) (L010-1, L010-2] [The following information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: $ 2,200,000 Variable expenses 660,000 Contribution margin Fixed expenses 1,100,000 Net operating income $ 440,000 Average operating assets $ 1,375,000 At the beginning of this year, the company has a $275.000 investment opportunity with the following cost and revenue characteristics: Sales 1,540,000 Sales $ 440,000 Contribution margin ratio 60 of sales Fixed expenses $ 220,000 The company's minimum required rate of return is 15% Foundational 10-2 (Algo) 2. What is last year's turnover? (Round your answer to 1 decimal place.) Turnover 0 Required information The Foundational 15 (Algo) (LO10-1, LO10-2] [The following information applies to the questions displayed below) Westerville Company reported the following results from last year's operations: Sales $ 2,200,000 Variable expenses 660,000 Contribution margin 1,540,000 Tixed expenses 1,100,000 Net operating income $ 440,000 Average operating assets $ 1.375,000 At the beginning of this year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics: Sales $ 440,000 Contribution margin ratio 60 of salen Fixed expenses $ 220,000 The company's minimum required rate of return is 15% Foundational 10-3 (Algo) 3. What is last year's return on investment (RO)? (Round your intermediate calculations to 1 decimal place.) ROI % ! Sales Required information The Foundational 15 (Algo) (LO10-1, LO10-2] [The following information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: $ 2,200,000 Variable expenses 660,000 Contribution margin 1,540,000 Fixed expenses 1,100.000 Net operating income 5 440,000 Average operating assets $ 1,375,000 At the beginning of this year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics: Sales $ 440,000 Contribution margin ratio 60 of sales Fixed expenses $ 220,000 The company's minimum required rate of return is 15% Foundational 10-4 (Algo) 4. What is the margin related to this year's investment opportunity? Margin 96 Required information The Foundational 15 (Algo) (L010-1, LO10-2] (The following information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: Sales $ 2,200,000 Variable expenses 660,000 Contribution margin 1,540,000 Fixed expenses 1,100,000 Bet operating income $ 440,000 Average operating assets $ 1,375,000 At the beginning of this year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics: ces Sales $.440,000 Contribution nargin ratio 60 of sales Fixed expenses $ 220,000 The company's minimum required rate of return is 15% Foundational 10-5 (Algo) 5. What is the turnover related to this year's Investment opportunity? (Round your answer to 1 decimal place.) Tumover Required information The Foundational 15 (Algo) (L010-1, LO10-2] [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 Not operating income Average operating assets $ 2,200,000 660,000 1.540.000 1.100.000 $ 440,000 $ 1,375,000 At the beginning of this year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics: Sales $ 440,000 Contribution margin ratio 60 of wales Tixed expenses 5 220,000 The company's minimum required rate of return is 15%, Foundational 10-6 (Algo) 6. What is the ROI related to this year's investment opportunity? (Do not round intermediate calculations.) ROI % Required information The Foundational 15 (Algo) (L010-1, LO10-2] [The following information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: Sales $ 2,200,000 Variable expenses 660,000 Contribution margin 1,540,000 Tixed expenses 1.100.000 Bet operating income $ 440,000 average operating assets 51.375,000 At the beginning of this year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics ces $ 480,000 Contribution sargin ratio 50 of sales Tixed expenses $ 220.000 The company's minimum required rate of return is 15%. Foundational 10-7 (Algo) zut 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 (.e., 0.1234 should be entered as 12.3).) O Required information The Foundational 15 (Algo) (L010-1, LO10-2] [The following information applies to the questions displayed below) Westerville Company reported the following results from last year's operations: Sales $ 2,200,000 Variable expenses 660,000 Contribution margin 1,540,000 Fixed expenses 1.100,000 Not operating income 5.440,000 average operating anseta $1,375,000 At the beginning of this year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics: Sales 5 440.000 contribution margin ratio 60 of salen Fixed expenses 220.000 The company's minimum required rate of return is 15% ht rences Foundational 10-8 (Algo) B. 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.) Tumove Required information The Foundational 15 (Algo) (L010-1, LO10-2] [The following information applies to the questions displayed below) Westerville Company reported the following results from last year's operations: Sales $ 2,200,000 Variable expenses 660.000 Contribution margin 1.540.000 Fixed expenses 1.100,000 Bet operating income $440,000 average operating assets 5.1.375.000 At the beginning of this year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics: ces Sales $440,000 Contribution margin ratio 60 of sales Yixed expenses $ 220,000 The company's minimum required rate of return is 15% Foundational 10-9 (Algo) 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 (ie. 0.1234 should be entered as 12.3).) ROI Westerville Company reported the following results from last year's operations. Sales $ 2,200,000 Variable expenses 660,000 Contribution margin 1,540,000 Pixed expenses 1,100,000 Net operating income $ 440,000 Average operating assets $ 1,375,000 At the beginning of this year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics Sales $440,000 Contribution margin ratio 60 of sales Fixed expenses $ 220.000 The company's minimum required rate of return is 15% Foundational 10-10 (Algo) 10-a. If Westerville's chief executive officer will earn a bonus only if her ROI from this year exceeds her Rol from last year, would she pursue the investment opportunity? Yes ONO 10-6. Would the owners of the company want her to pursue the investment opportunity? Yes NA Required information The Foundational 15 (Algo) (L010-1, LO10-2) [The following information applies to the questions displayed below) Westerville Company reported the following results from last year's operations: Sales $ 2,200,000 Variable expenses 660,000 Contribution margin 1.540,000 Tixed expenses 1,100,000 Not operating income $ 440.000 Average operating assets 5 1.375,000 At the beginning of this year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics: Sales $440,000 Contribution margin ratio 60 of sales Fixed expenses $ 220,000 The company's minimum required rate of rotum is 15% es Foundational 10-11 (Algo) 11. What is last year's residual income? Redunt income Required information The Foundational 15 (Algo) (L010-1, L010-2] The following information applies to the questions displayed below) Westerville Company reported the following results from last year's operations: Sales $ 2,200,000 Variable expenses 660,000 Contribution margin 1.540,000 Fixed expenses 1.100.000 Het operating income $440,000 Average operating assets $ 1.375.000 At the beginning of this year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics: Bales $440,000 Contribution margin ratio 60 ot salen Fixed expenses $ 220,000 The company's minimum required rate of return is 15%, Foundational 10-12 (Algo) 12. What is the residual income of this year's investment opportunity? Residual income Required information The Foundational 15 (Algo) (L010-1, L010-2] [The following information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: Sales $ 2.200,000 Variable expenses 660,000 Contribution margin 1,500,000 Fixed expenses 1.100.000 Het operating income 5.440,000 Average operating assets $ 1,375,000 At the beginning of this year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Pined expenses $ 440.000 60 of sales $ 220,000 The company's minimum required rate of return is 15% Foundational 10-13 (Algo) 13. the company purtues the investment opportunity and otherwise performs the same as last year, what residual income will team this year? Raincome Required information The Foundational 15 (Algo) (L010-1, L010-2) [The following information applies to the questions displayed below) Westerville Company reported the following results from last year's operations: Sales $ 2,200,000 Variable expenses 660,000 Contribution margin 1.540,000 Tixed expenses 1,100,000 Het operating income $ 440,000 Average operating assets $ 1,375,000 Al the beginning of this year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics: $440,000 Contribution margin ratio 60 of sales Fixed expenses $ 220,000 The company's minimum required rate of return is 15% Foundational 10-14 (Algo) 14. Westerville's chief executive officer will eam a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the investment opportunity? Yes NO Westerville Company reported the following results from last year's operations: Sales $ 2,200,000 Variable expenses 660,000 Contribution margin 1,540,000 Fixed expenses 1.100,000 Het operating income $ 440,000 Average operating assets $ 1,375,000 At the beginning of this year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics: Sales 3 440,000 Contribution margin ratio 60 of sales Pixed expenses $ 220,000 The company's minimum required rate of return is 15% Foundational 10-15 (Algo) 15-a. Assume that the contribution margin ratio of the investment opportunity was 55% instead of 60%. I 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 No 15 b. Would the owners of the company want her to pursue the investment opportunity? Yes NO