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Westerville Company reported the following results from last year's operations; Sales $1,200,000 V ariable expenses 320,000 Contribution margin 880,000 fixed expenses 640,000 Net operating income

Westerville Company reported the following results from last year's operations;

Sales $1,200,000

Variable expenses 320,000

Contribution margin 880,000

fixed expenses 640,000

Net operating income $240,000

Average operating assets $600,000

This year, the company has $150,000 investment opportunity with the following cost and revenue characteristics;

Sales $340,000

Contribution margin ratio 50% of sales

fixed expenses $84,000

The company's minimum required rate of return 15%

1. What is last year's margin?

3. What is last year's return on investment (ROI)

4. What is the margin related to this year's investment opportunity?

6. What is the ROI related to this year's investment opportunity?

7. If the company pursues the investment oppportunityand otherwise performs the same as last year, what margin will it earn this year?

9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year?

11. What is last year's residual income?

13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year?

I understand the other questions that are not listed but these were wrong.

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