Westerville Company reported the following results from last years operations: Sales $ 1,400,000 Variable expenses 720,000 ________________________________________ ________________________________________ Contribution margin 680,000 Fixed expenses 470,000 ________________________________________ ________________________________________ Net operating income $ 210,000 ________________________________________________________________________________ ________________________________________________________________________________ Average operating assets $ 875,000 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ This year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics: Sales $ 560,000 Contribution margin ratio 70 % of sales Fixed expenses $ 336,000 ________________________________________ The companys minimum required rate of return is 15%.<\/p>
5. What is the turnover related to this years investment opportunity? (Round your answer to 1 decimal place.) Turnover_________<\/p>
6. What is the ROI related to this years investment opportunity? ROI______%<\/p>
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 .1234 should be entered as 12.3)) Margin_______%<\/p>
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_______<\/p>
<\/p>", "transcribed_text": "", "related_book": { "title": null, "isbn": null, "edition": null, "authors": null, "cover_image": null, "uri": null, "see_more_uri": "" }, "free_related_book": { "isbn": "", "uri": "", "name": "", "edition": "" }, "question_posted": "2024-09-13 00:08:40", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/industrial-organizational-psychology-understanding-the-workplace\/what-is-the-cost-of-mental-illness-to-the-individual-2004909", "description": "What is the cost of mental illness to the individual and his or her family? Discuss public and internalized stigma.", "stars": 0 }, { "url": "\/starlight-glassware-company-has-the-following-standards-and-flexiblebudget-data", "description": "Starlight Glassware Company has the following standards and flexible-budget data. Standard variable-overhead rate........................$18.00 per direct-labor hour Standard quantity of direct...", "stars": 3 }, { "url": "\/study-help\/questions\/westerville-company-reported-the-following-results-from-last-years-operations-10524014", "description": "Westerville Company reported the following results from last years operations: Sales $ 1,400,000 Variable expenses 720,000 ________________________________________...", "stars": 3 }, { "url": "\/study-help\/questions\/review-the-following-progress-note-and-identify-the-appropriate-soap-1557159", "description": "Review the following Progress Note and identify the appropriate SOAP note portion applicable to the statements. Progress Note Patient states that they have painful urination and pressure. No blood in...", "stars": 3 }, { "url": "\/study-help\/questions\/consider-the-design-of-an-engineered-wetland-amended-with-limestone-1004132", "description": "Consider the design of an engineered wetland amended with limestone to treat acidic drainage from a coal mine. For the purposes of this problem, we will focus on the total dissolved solids (TDS) of...", "stars": 3 }, { "url": "\/study-help\/questions\/hudson-jewelers-current-layout-displays-jewelry-designs-from-the-cad-1003928", "description": "Hudson Jewelers' current layout displays jewelry designs from the CAD system on a screen in the front of the store. However, customers have little privacy when designing jewelry there. What are the...", "stars": 3 }, { "url": "\/study-help\/questions\/you-deposit-a-today-in-a-fund-paying-interest-at-1001825", "description": "You deposit $A today in a fund paying interest at j4 = 6%. You plan to make quarterly withdrawals for 5 years (for a total of 20 withdrawals), with the first deposit made 1 year from now. The first...", "stars": 3 }, { "url": "\/study-help\/questions\/2-titanic-corporation-has-three-investment-centre-as-below-centre-1000558", "description": "2. Titanic Corporation has three investment centre as below: Centre Nike Pine Feira (RM) (RM) (RM) Sales Operating income Average operating assets 4,000,000 6,000,000 3,500,000 4,000,000 6,000,000...", "stars": 3 }, { "url": "\/study-help\/questions\/the-standard-cost-card-for-a-product-indicates-that-one-1000157", "description": "The standard cost card for a product indicates that one unit of the product requires 8 kilograms of a raw material at $0.80 per kilogram. The actual production of the product in April was 870 units,...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/thornton-inc-has-budgeted-sales-for-the-months-of-september-10524013", "next": "\/study-help\/questions\/determine-the-ending-inventory-and-the-cost-of-goods-sold-10524015" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "Westerville Company reported the following results from last years operations: Sales $", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/westerville-company-reported-the-following-results-from-last-years-operations-10524014" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } } } }