The Foundational 15 (L010-1, L010-2) [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 expenser Net operating income Average operating assets $1,500,000 730,000 770,000 470,000 5 300,000 $ 937,500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 580,000 701 of wales $319,000 The company's minimum required rate of return is 10% Foundational 10-9 9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (Do not round Intermediate calculations. Round your percentage answer to 1 decimal place (.e., 0.1234 should be considered as 12.3). ROI % Average operating at 337,500 At the beginning of this year the company has a $362,500 investment opportunity with the flowing cost and revence characteristics Sales Contribution sais ratio Fixed expenses TO of sales # 319.000 The company's minimum required rate of return is 10% Foundational 10-10 10-a. If Westerville's chief executive officer will earn a bonus only if her ROI from this year exceeds her ROI from last year, would she pursue the investment opportunity? Yes No 10-b. Would the owners of the company want her to pursue the investment opportunity? Yes No Hale [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 $1,500,000 730.000 770,000 470,000 $ 300,000 $ 937.500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 580,000 701 of sales $ 319,000 The company's minimum required rate of return is 10% Foundational 10-11 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 Pixed expenses Net operating income Average operating anneta $1,500,000 730.000 770.000 470,000 300,000 $ 937.500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 580,000 201 of sales $ 319,000 The company's minimum required rate of return is 10% Foundational 10-12 12. What is the residual income of this year's investment opportunity? Residual income wesele Lory Jure TURUT DIS HOLY SuperQUIS Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating anneta $ 1,500,000 230,000 770,000 470,000 $ 300,000 $ 937,500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Sale Contribution margin ratio Fixed expenses $ 580,000 701 of wales $319,000 The company's minimum required rate of return is 10% Foundational 10-13 13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year? Residus income 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 Pixed expenses Net operating income Average operating assets $1,500,000 730,000 770,000 470.000 $ 300,000 s 937,500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: es Contribution margin ratio Fixed expenses $ 580,000 701 of sales $ 319,000 The company's minimum required rate of return is 10% Foundational 10-14 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 No $ Het operating income Average operating susta 300,000 937,500 $ At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 580,000 700 of sales $ 319,000 The company's minimum required rate of return is 10% Foundational 10-15 15-a. Assume that the contribution margin ratio of the investment opportunity was 60% instead of 70%. 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 O NO 15-b. Would the owners of the company want her to pursue the investment opportunity? Yes No
