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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
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 $ 1,200,000 420,000 780,000 600,000 $ 180,000 Average operating assets $ 600,000 At the beginning of this year, the company has a $137,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 220,000 60% of sales $ 99,000 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 6. What is the ROI related to this year's investment opportunity? (Do not round intermediate calculations.) ROI % 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 % 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
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