Westerville Company reported the following results from last year's operations:
Sales $1,500,000
Variable expenses 730,000
Contribution margin 770,000
Fixed expenses 470,000
Net operating income $300,000
Average operating assets $937,500
At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics:
Sales $580,000
Contribution margin ratio 70 % of sales
Fixed expenses $319,000
The company's minimum required rate of return is 10%.
Required:
a. What is last year's margin?
b. What is last year's turnover?
c. What is last year's return on investment (ROI) ?
d. What is the margin related to this year's investment opportunity?
e. What is the turnover related to this year's investment opportunity?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Westerville Company reported the following results from last year's operations: Sales $1,500,000 Variable expenses 730,000 Contribution ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The following data are for the Akron Division of Consolidated Rubber, Inc.:Sales $ 750,000Net operating income $ 45,000Average operating assets $ 250,000Stockholders' equity $ 75,000Residual income $ 15,000 For the past year, the minimum required
Answers (1)
A company sold equipment that originally cost $250,000 for $50,000 cash. the accumulated depreciation on the equipment was $200,000. the company should recognize a:
Answers (2)
Department is related to organization as employee is related to Which of the following? Perforarmance Subordinate Coworker Supervisor Team
Answers (1)
Metlock, Inc. had net sales in 2020 of $1,430,300. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $239,200 debit, and Allowance for Doubtful Accounts $3,780 credit.
Answers (1)
Question Workspace Harris walked onto some train tracks, ignoring a yellow warning line painted on the station platform, as well as shouts from concerned onlookers, and the ringing bells and flashing lights signaling the approach of an express train.
Answers (1)
New Questions in Business
The transactions completed by Franklin Company during January, its first month of operations, are listed below. Assume that Franklin Company uses the following journals: cash receipts (CR), cash payments (CP.
Answers (1)
A Company's perpetual preferred stock sells for $102.50 per share, and pays a $9.50 annual dividend. If the company were to issue a new preferred issue, a flotation cost of 4.00% would be paid to the investment bankers.
Answers (1)
Abigail spent $100 on a new edition of the personal finance textbook rather than $75 for a used copy. the additional cost for the new copy is called the
Answers (1)
What can be measured by the level of real gdp per person?
Answers (1)
Three people have identical rights but unequal shares in a property, share an indivisible interest, and may sell or transfer their interest without consent of the others. What type of ownership is this?
Answers (1)