Question
What is last years turnover? (Round your answer to 1 decimal place.) What is last years return on investment (ROI)? What is the turnover related
What is last years turnover? (Round your answer to 1 decimal place.) |
What is last years return on investment (ROI)? |
What is the turnover related to this years investment opportunity? (Round your answer to 1 decimal place.) |
What is the ROI related to this years investment opportunity? |
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)) |
What is last years residual income? |
What is the residual income of this years investment opportunity? |
If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year? |
Westerville Company reported the following results from last year's operations: Sales Variable expenses $1,500,000 530,000 Contribution margin Fixed expenses 970,000 670,000 Net operating income $ 300,000 Average operating assets $ 937,500 This year, the company has a $212,500 investment opportunity with the following cost and revenue characteristics: Sales $340,000 Contribution margin ratio Fixed expenses $ 187,000 70% of 70 sales The company's minimum required rate of return is 10%
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