Question: 3. Given the following data, answer the questions below the table: Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution

3. Given the following data, answer the questions below the table: Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin_ Fixed expenses Net operating income Average operating assets $1,000,000 $300,000 $700,000 $500,000 $200,000 $625,000 At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $200,000 60% of sales $90,000 The company's minimum required rate of return is 15%. What is last year's margin? What is last year's turnover? (Round your answer to 1 decimal place.) What is last year's return on investment (ROI)? (Round your intermediate calculations to 1 decimal place.) What is the margin related to this year's investment opportunity? What is the turnover related to this year's investment opportunity? (Round your answer to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
