Question
What is the margin related to this year's investment opportunity? 5.) What is the turnover related to this year's investment opportunity? (Round your answer to
What is the margin related to this year's investment opportunity?
5.) What is the turnover related to this year's investment opportunity? (Round your answer to 1 decimal place.)
6.) What is the ROI related to this year's 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))
10-b. Would the owners of the company want her to pursue the investment opportunity?
Westerville Company reported the following results from last year's operations: Sales Variable expenses $ 2,200,000 660,000 Contribution margin 1,540,000 Fixed expenses 1,100,000 Net operating income $ 440,000 Average operating assets $1,375,000 This year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $440,000 60 % of sales $220,000 The company's minimum required rate of return is 15%. 1.) What is last year's margin? 2.) What is last year's turnover? (Round your answer to 1 decimal place.) 3.) What is last year's return on investment (ROI)?
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