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What is last years turnover? (Round your answer to 1 decimal place.) IT IS NOT 2,000,000.* What is the turnover related to this years investment
What is last years turnover? (Round your answer to 1 decimal place.) IT IS NOT 2,000,000.*
What is the turnover related to this years investment opportunity? (Round your answer to 1 decimal place.) IT IS NOT $400,000.*
What is the residual income of this years investment opportunity?? IT IS NOT $35,000.*
Westerville Company reported the following results from last year's operations: Sales $2,000,000 Variable expenses 640,000 Contribution margin 1,360,000 Fixed expenses Net operating income Average operating assets 860,000 $500,000 1,250,000 This year, the company has a $250,000 investment opportunity with the following cost and revenue characteristics: $400,000 Sales Contribution margin ratio Fixed expenses 70 % of sales $220,000 The company's minimum required rate of return is 10%Step by Step Solution
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