Question
Westerville Company reported the following results from last years operations: The following information applies to the questions displayed below.J Westerville Company reported the following results
Westerville Company reported the following results from last years operations: The following information applies to the questions displayed below.J Westerville Company reported the following results from last years operations: Sales $1400000 Variable expenses 720,000 Contribution margin 680,000 Fixed expenses470000 Net operating income$210000 Average operating assets 875000 This year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics: Sales $560000 Cortunii margin ratio Fixed expenses 70 % of sales. Fixed expenses 336000. The company's minimum required rate of return is 15%
REQUIRED: What is the last year margin, last year turnover(one decimal), last year ROI, margin related to this year's investment opportunity, turnover, related to this year's investment opportunity, ROI related to this year's opportunity, If the company pursue the investment opportunity and otherwise perform same as last year, what margin, turnover and ROI will it earn this year in %, last year's residual income, this year's residual investment opportunity. If the company pursue the investment opportunity and otherwise perform the same as last year what residual income will it earn this year
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