the 18.4% is wrong - couldnt figure it out.
Required information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales $1,500,000 500,000 Variable expenses Contribution 1,000,000 marqin Fixed expenses 700,000 Net operating $ 300,000 income Average operating $1,000,000 assetS At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics Sales $300,000 Contribution margin ratio sales Fixed expenses $132,000 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 .1234 should be entered as 12.3)) Margin 18.41% Required information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales $1,500,000 500,000 Variable expenses Contribution 1,000,000 margin Fixed expenses 700,000 Net operating $ 300,000 income Average operating $1,000,000 assetS At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics Sales $300,000 Contribution margin ratio sales Fixed expenses $132,000 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 ROl will it earn this year? (Round your percentage answer to 1 decimal place (i.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 $1,500,000 500,000 Variable expenses Contribution 1,000,000 margin Fixed expenses 700,000 Net operating $ 300,000 income Average operating $1,000,000 assetS At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics Sales $300,000 Contribution margin ratio % of 60 sales $132,000 Fixed expenses 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 ROl 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 $1,500,000 500,000 Variable expenses Contribution 1,000,000 margin Fixed expenses 700,000 Net operating $ 300,000 income Average operating $1,000,000 assetS At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics Sales $300,000 Contribution margin ratio sales Fixed expenses $132,000 The company's minimum required rate of return is 10% 11. What is last year's residual income? Residua income Required information The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations Sales $1,500,000 500,000 Variable expenses Contribution 1,000,000 margin Fixed expenses 700,000 Net operating $ 300,000 i nc ome Average operating $1,000,000 assetS At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics Sales $300,000 Contribution margin ratio sales Fixed expenses $132,000 The company's minimum required rate of return is 10% 12. What is the residual income of this year's investment opportunity? esidua income Required information The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations Sales $1,500,000 500,000 Variable expenses Contribution 1,000,000 margin Fixed expenses 700,000 Net operating $ 300,000 i nc ome Average operating $1,000,000 assetS At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics Sales $300,000 Contribution margin ratio sales Fixed expenses $132,000 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? esidua income Required information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales $1,500,000 500,000 Variable expenses Contribution 1,000,000 margin Fixed expenses 700,000 Net operating $ 300,000 income Average operating $1,000,000 assetS At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics Sales $300,000 Contribution margin ratio sales Fixed expenses $132,000 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 Required information The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations Sales $1,500,000 500,000 Variable expenses Contribution 1,000,000 margin Fixed expenses 700,000 Net operating $ 300,000 i nc ome Average operating $1,000,000 assetS At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics Sales $300,000 Contribution margin ratio % of 60 sales Fixed expenses $132,000 The company's minimum required rate of return is 10% 15-a Assume that the contribution margin ratio of the investment opportunity was 50% instead of 60%. 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? O Yes No 15-b. Would the owners of the company want her to pursue the investment opportunity? O Yes O No
