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Westerville Company reported the following results from last year s operations: Sales $ 1 , 4 0 0 , 0 0 0 Variable expenses 7
Westerville Company reported the following results from last years operations:
Sales $
Variable expenses
Contribution margin
Fixed expenses
Net operating income $
Average operating assets $
At the beginning of this year, the company has a $ investment opportunity with the following cost and revenue characteristics:
Sales $
Contribution margin ratio of sales
Fixed expenses $
The companys minimum required rate of return is
What is the margin related to this years investment opportunity?
If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year?
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 decimal places.
If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year?
What is last years residual income?
What is the residual income of this years investment opportunity?
If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year?
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