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Westerville Company reported the following results from last years operations: Sales $ 1,000,000 Variable expenses 300,000 Contribution margin 700,000 Fixed expenses 500,000 Net operating income

Westerville Company reported the following results from last years operations:

Sales $ 1,000,000
Variable expenses 300,000
Contribution margin 700,000
Fixed expenses 500,000
Net operating income $ 200,000
Average operating assets $ 625,000

This year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics:

Sales $ 200,000
Contribution margin ratio 60 % of sales
Fixed expenses $ 90,000
The companys minimum required rate of return is 15%.
5.

What is the turnover related to this years investment opportunity? (Round your answer to 2 decimal places.)

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