Westerville Company reported the following results from last years operations:Required:
2. What is last year's turnover?
3. What is last year's ROI?
4. | What is the margin related to this years investment opportunity? |
5. What is the turnover related to this year's investment opportunity?
6. | What is the ROI related to this years investment opportunity? 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)) 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.) 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 .1234 should be entered as 12.3)) 11. | What is last years residual income? 12. | What is the residual income of this years investment opportunity? | 13. | If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year? | | | | | |
[The following information applies to the questions displayed below. Westrile Company reported the folowing results from lastyear's aperations Westerville Company reported the following results from last year's operations Sales $1,500,000 Variable expenses 730,000 Contribution margin 770,000 Fixed expenses Net operating income Average operating assets 470,000 $300,000 $ 937,500 This year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: $580,000 Sales Contribution margin ratio Fixed expenses 70 % of sales $319,000 The company's minimum required rate of return is 10%