Question
Westerville Company reported the following results from last year's operations: sales $1,000,000, variable exp 300,000, contributed margin 700,000, fixed exp 500,000, net operating income 200,000
Westerville Company reported the following results from last year's operations: sales $1,000,000, variable exp 300,000, contributed margin 700,000, fixed exp 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 company's minimum required rate of return is 15%. Required #1 what is last years margin? #2 What is the last years turnover? #3 what is last year' return on investment (ROI)?
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