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Westerville Company reported the following results from last years operations: Sales $ 1,800,000 Variable expenses 740,000 Contribution margin 1,060,000 Fixed expenses 700,000 Net operating income

Westerville Company reported the following results from last years operations:

Sales $ 1,800,000
Variable expenses 740,000
Contribution margin 1,060,000
Fixed expenses 700,000
Net operating income $ 360,000
Average operating assets $ 1,200,000

This year, the company has a $400,000 investment opportunity with the following cost and revenue characteristics:

Sales $ 600,000
Contribution margin ratio 60 % of sales
Fixed expenses $ 288,000

The companys minimum required rate of return is 10%.

1. What is last years margin? Margin ______%

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

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

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

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

THANK YOU SO VERY MUCH FOR YOUR SUPPORT!!!

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