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The minimum required rate of return is 15%. I know that last year's margin is 20% Last year's turnover is 1.6 Last year's ROI is
The minimum required rate of return is 15%.
I know that last year's margin is 20%
Last year's turnover is 1.6
Last year's ROI is 0.32
But how do I calculate the margin, turover, and ROI related to this year's investment opportunity? And if the company pursues the investment opportunity and performs the same as last year, then what is the margin, turnover, and ROI that it will earn this year?
Last year $1,000,000 Sales Variable expenses 300,000 Contribution margin 700,000 Fixed expenses 500,000 Net operating income 200,000 $625,000 Average operating assets This year company has a $120,000 investment opportunity with the following cost and revenue $200,000 Sales Contribution margin ratio 60% of sales $90,000 Fixed expensesStep by Step Solution
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