Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed...
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Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,500,000 530,000 970,000 670,000 $ 300,000 $ 937,500 At the beginning of this year, the company has a $212,500 investment opportunity with the following cost and revenue characteristics: Sales $ 340,000 Contribution margin ratio 70 % of sales $ 187,000 Fixed expenses The company's minimum required rate of return is 10%. 8. If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year? Note: Round your answer to 2 decimal places. Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,500,000 530,000 970,000 670,000 $ 300,000 $ 937,500 At the beginning of this year, the company has a $212,500 investment opportunity with the following cost and revenue characteristics: Sales $ 340,000 Contribution margin ratio 70 % of sales $ 187,000 Fixed expenses The company's minimum required rate of return is 10%. 8. If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year? Note: Round your answer to 2 decimal places.
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