Question
s Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Tixed expenses Net operating income $ 1,000,000 300,000 700,000
s Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Tixed expenses Net operating income $ 1,000,000 300,000 700,000 500,dee $ 200,000 Average operating assets $ 625,000 O At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: Sales $ 200,000 Contribution margin ratio Fixed expenses 60 % of sales $ 90,000 The company's minimum required rate of return is 15%, Required: 1. What is last year's margin? Marnin . 2. What is last year's turnover? (Round your answer to 1 decimal place.) Turnover 3. What is last year's return on investment (ROI)? ROI % 4. What is the margin related to this year's investment opportunity? Margin % ' 5. What is the turnover related to this year's investment opportunity? (Round your answer to 2 decimal places.) Turnover
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