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

Westerville Company reported the following results from last years operations:

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

This year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics:

Sales $ 300,000
Contribution margin ratio 60 % of sales
Fixed expenses $ 132,000

The companys minimum required rate of return is 10%.

1. What is last years margin?

2. What is last years turnover? (Round your answer to 1 decimal place.)

3. What is last years return on investment (ROI)?

4. What is the margin related to this years investment opportunity?

5. What is the turnover related to this years investment opportunity? (Round your answer to 1 decimal place.)

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