[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 $ 1,750,000 520,000 1,230,000 880,000 $ 350,000 $ 875,000 At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 320,000 60 % of sales $ 128,000 The company's minimum required rate of return is 20%. Required: 1. What is last year's margin? Margin % Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,750,000 520,000 1,230,000 880,000 $ 350,000 $ 875,000 At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 320,000 60 % of sales $ 128,000 The company's minimum required rate of return is 20%. 2. What is last year's turnover? (Round your answer to 1 decimal place.) Turnover Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,750,000 520,000 1,230,000 880,000 $ 350,000 $ 875,000 At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 320,000 60 % of sales $ 128,000 The company's minimum required rate of return is 20%. 3. What is last year's return on investment (ROI)? ROI % Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,750,000 520,000 1,230,000 880,000 $ 350,000 $ 875,000 At the beginning of this year, the company has a $200,000 inve characteristics: ment opportunity with the fo Sales Contribution margin ratio Fixed expenses $ 320,000 60 % of sales $ 128,000 The company's minimum required rate of return is 20%. 4. What is the margin related to this year's investment opportunity? Margin % Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,750,000 520,000 1,230,000 880,000 $ 350,000 $ 875,000 At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and reven characteristics: Sales Contribution margin ratio Fixed expenses $ 320,000 60 % of sales $ 128,000 The company's minimum required rate of return is 20%. 5. What is the turnover related to this year's investment opportunity? (Round your answer to 1 decimal place.) Turnover Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,750,000 520,000 1,230,000 880,000 $ 350,000 $ 875,000 At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and reven characteristics: Sales Contribution margin ratio Fixed expenses $ 320,000 60 % of sales $ 128,000 The company's minimum required rate of return is 20%. 6. What is the ROI related to this year's investment opportunity? ROI % Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,750,000 520,000 1,230,000 880,000 $ 350,000 $ 875,000 At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 320,000 60 % of sales $ 128,000 The company's minimum required rate of return is 20%. 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 % Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,750,000 520,000 1,230,000 880,000 $ 350,000 $ 875,000 At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 320,000 60 % of sales $ 128,000 The company's minimum required rate of return is 20%. 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 Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,750,000 520,000 1,230,000 880,000 $ 350,000 $ 875,000 At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 320,000 60 % of sales $ 128,000 The company's minimum required rate of return is 20%. 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%.)) ROI (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 $ 1,750,000 520,000 1,230,000 880,000 $ 350,000 $ 875,000 At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 320,000 60 % of sales $ 128,000 The company's minimum required rate of return is 20%. 11. What is last year's residual income? Residual income Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,750,000 520,000 1,230,000 880,000 $ 350,000 $ 875,000 At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 320,000 60 % of sales $ 128,000 The company's minimum required rate of return is 20%. 12. What is the residual income of this year's investment opportunity? Residual income Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,750,000 520,000 1,230,000 880,000 $ 350,000 $ 875,000 At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 320,000 60 % of sales $ 128,000 The company's minimum required rate of return is 20%. 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