The Foundational 15 [LO10-1, LO10-2) [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 expenses Net operating income Average operating assets $ 1,000,000 300,000 700,000 500,000 $ 200,000 $ 625,000 At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 200,000 60% of sales $ 90,000 The company's minimum required rate of return is 15%. Foundational 10-2 2. What is last year's turnover? (Round your answer to 1 decimal place.) Turnove The Foundational 15 (L010-1, LO10-2) [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 Pixed expenses Net operating income Average operating assets $ 1,000,000 300,000 700,000 500,000 $ 200,000 $ 625,000 At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 200,000 60 of sales $ 90,000 The company's minimum required rate of return is 15%. Foundational 10-3 3. What is last year's return on investment (ROI)? (Round your intermediate calculations to 1 decimal place.) ROL % The Foundational 15 [LO10-1, LO10-2) (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 expenses Net operating income Average operating assets $ 1,000,000 300,000 700,000 500,000 $ 200,000 $ 625,000 At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 200,000 60 8 of sale $ 90,000 The company's minimum required rate of return is 15%. Foundational 10-4 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 $ 1,000,000 300,000 700,000 500,000 $ 200,000 $ 625,000 At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 200,000 60 of sales $ 90,000 The company's minimum required rate of return is 15% Foundational 10-7 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. 0.1234 should be entered as 12.3).) Margin % 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 expenses Het operating income Average operating assets $1,000,000 300,000 700,000 500,000 $ 200,000 $ 625,000 At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 200,000 60 B of sales $ 90,000 ces The company's minimum required rate of return is 15%. Foundational 10-8 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 Required information The Foundational 15 (LO10-1, LO10-2] [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 expenses Net operating income Average operating assets $ 1,000,000 300,000 700,000 500,000 $ 200,000 $ 625,000 At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 200,000 60 6 of sales $ 90,000 The company's minimum required rate of return is 15%. Foundational 10-9 9. If the company pursues the investment opportunity and otherwise performs the same as last year, what Rol will it earn this year? (Do not round intermediate calculations. Round your percentage answer to 1 decimal place (ie. 0.1234 should be entered at 12.3).) ROL % Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,000,000 300,000 700,000 500,000 $ 200,000 $ 625,000 At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 200,000 60 # of sales $ 90,000 The company's minimum required rate of return is 15%. Foundational 10-11 11. What is last year's residual income? Residual income The Foundational 15 [LO10-1, LO10-2) {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 expenses Met operating income Average operating assets $ 1,000,000 300,000 700,000 500,000 $ 200,000 $ 625,000 At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 200,000 60 of sales $ 90,000 The company's minimum required rate of return is 15%. 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? Residual income