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The Foundational 15 (LO11-1, LO11-2] [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales
The Foundational 15 (LO11-1, LO11-2] [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 $ 2,000,000 640,000 1,360,000 860,000 $ 500,000 $ 1,250,000 At the beginning of this year, the company has a $250,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 400,000 70% of sales $ 220,000 The company's minimum required rate of return is 10%. Required: 1. What is last year's margin? Margin 2. What is last year's turnover? (Round your answer to 1 decimal place.) Turnover 3. What is last year's return on investment (ROI)? Roi % 4. What is the margin related to this year's investment opportunity? Margin
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