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Westerville Company reported the following results from last years operations:
Sales $ 1,900,000
Variable expenses 550,000
Contribution margin 1,350,000
Fixed expenses 875,000
Net operating income $ 475,000
Average operating assets $ 1,187,500
At the beginning of this year, the company has a $237,500 investment opportunity with the following cost and revenue characteristics:
Sales $ 380,000
Contribution margin ratio 50% of sales
Fixed expenses $ 133,000
The companys minimum required rate of return is 10%.
Foundational 11-8(Algo)
8. If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year?

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