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Westerville Company reported the following results from last year's operations: Sales $ 2,200,000 Variable expenses 660,000 Contribution margin 1,540,000 Fixed expenses 1,100,000 Net operating income

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Westerville Company reported the following results from last year's operations: Sales $ 2,200,000 Variable expenses 660,000 Contribution margin 1,540,000 Fixed expenses 1,100,000 Net operating income $ 440,000 Average operating $ 1,375,000 asseta At the beginning of this year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 440,000 60 # of sales $ 220,000 The company's minimum required rate of return is 15%. 7. If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year? (Round your percentage answer to 1 decimal place (i.e.1234 should be entered as 12.3)) Margin % Westerville Company reported the following results from last year's operations: 15 Sales $ 2,200,000 Variable expenses 660,000 Contribution margin 1,540,000 Fixed expenses 1,100,000 Net operating income $ 440,000 Average operating $ 1,375,000 assets At the beginning of this year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics: Sales $ 440,000 Contribution margin 60 # of sales ratio Fixed expenses $ 220,000 The company's minimum required rate of return is 15%. 8. If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year? (Round your answer to 2 decimal places.) Turnover 15 Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 2,200,000 660.000 1,540,000 1,100,000 $ 440,000 $ 1,375,000 At the beginning of this year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 440,000 60 of sales $ 220,000 The company's minimum required rate of return is 15%. 9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%.)) ROL %

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