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Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses $1,400,000 720,000 680,000 470,000 Net operating income
Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses $1,400,000 720,000 680,000 470,000 Net operating income $ 210,000 Average operating assets $875,000 At the beginning of 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 $336,000 Fixed expenses The company's minimum required rate of return is 15%. Foundational 10-1 (Algo) Required: 1. What is last year's margin? Margin % 2. What is last year's turnover? (Round your answer to 1 decimal place.) Turnover 3. What is last year's return on investment (ROI)? (Round your intermediate calculations to 1 decimal place.) ROI 4. What is the margin related to this year's investment opportunity? Margin %
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