Question
Westerville Company reported the following results from last years operations: Sales $ 1,400,000 Variable expenses 510,000 Contribution margin 890,000 Fixed expenses 610,000 Net operating income
| Westerville Company reported the following results from last years operations: |
| Sales | $ | 1,400,000 |
| Variable expenses | 510,000 | |
| Contribution margin | 890,000 | |
| Fixed expenses | 610,000 | |
| Net operating income | $ | 280,000 |
| Average operating assets | $ | 875,000 |
| This year, the company has a $175,000 investment opportunity with the following cost and revenue characteristics: |
| Sales | $ | 280,000 | |
| Contribution margin ratio | 50 | % of sales | |
| Fixed expenses | $ | 98,000 | |
| The companys minimum required rate of return is 15%. |
1.
Required information
| Required: |
| 1. | What is last years margin? |
eBook & Resources
eBook: Compute residual income and understand its strengths and weaknesses.eBook: Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.
Check my work
2.
Required information
| 2. | What is last years turnover? (Round your answer to 1 decimal place.) |
eBook & Resources
eBook: Compute residual income and understand its strengths and weaknesses.eBook: Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.
Check my work
3.
Required information
| 3. | What is last years return on investment (ROI)? |
eBook & Resources
eBook: Compute residual income and understand its strengths and weaknesses.eBook: Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.
Check my work
4.
Required information
| 4. | What is the margin related to this years investment opportunity? |
eBook & Resources
eBook: Compute residual income and understand its strengths and weaknesses.eBook: Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.
Check my work
5.
Required information
| 5. | What is the turnover related to this years investment opportunity? (Round your answer to 1 decimal place.) |
eBook & Resources
eBook: Compute residual income and understand its strengths and weaknesses.eBook: Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.
Check my work
6.
Required information
| 6. | What is the ROI related to this years investment opportunity? |
eBook & Resources
eBook: Compute residual income and understand its strengths and weaknesses.eBook: Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.
Check my work
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Audit Security How To Plan Implement And Audit Netsuite Security
Authors: Zenobia Plautz
1st Edition
B0B5KQKXSY, 979-8840043851
