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Required information The Foundational 15 (Algo) [LO11-1, LO11-2] [The following information applies to the questions displayed below.] Westerville Company reported the following results from last
Required information The Foundational 15 (Algo) [LO11-1, LO11-2] [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 Net operating income $ 1,200,000 320,000 880,000 640,000 $ 240,000 $ 600,000 Average operating assets At the beginning of this year, the company has a $150,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 240,000 50 $ 84,000 % of sales The company's minimum required rate of return is 15%. 4. What is the margin related to this year's investment opportunity? X Answer is complete but not entirely correct. Margin 20 X % 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.1234 should be entered as 12.3)) X Answer is complete but not entirely correct. Margin 15.0 X % 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.) Answer is complete but not entirely correct. Turnover 1.60 X 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%.)) Answer is complete but not entirely correct. ROI 24.0 % 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 ho
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