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?
Find 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 you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
If you borrow $10,000 for two years under the condition that no interest is charged for the first six months, and a quarterly compounded interest rate of 12% applies for the remainder of the period, how much interest will you pay?
Answers (1)
Live forever life insurance co. is selling a perpetuity contract that pays $2,000 monthly. the contract currently sells for $125,000. what is the monthly return on this investment vehicle?
Answers (1)
Proposals to increase the U. S. minimum wage to $15 an hour are often met with vehement objections that fast food workers should not be paid as much as or even more than emergency medical technicians or other more skilled workers.
Answers (1)
Processing of computer information is an example of which sector of the economy? processing of computer information is an example of which sector of the economy? primary the data sector primary and secondary sixth percentile tertiary
Answers (1)
At December 31, balances in Manufacturing Overhead are Shimeca Company-debit $2,150, Garcia Company-credit $997. Prepare the adjusting entry for each company at December 31, assuming the adjustment is made to cost of goods sold.
Answers (2)
New Questions in Business
Which of the following best describes how consumers let producers know what they want to buy and how much they're willing to pay? O A. The purchases consumers make indicate their desires to producers. O B.
Answers (2)
Listing agreements Must be in writing. Are not legally binding. Are unilateral employment contracts. Create an agency relationship.
Answers (1)
Josh is walking to ben hill griffin stadium on gameday when a coca-cola representative offers him and his friends free cans of their new and improved cherry coke. what element of the promotional mix is coca-cola using?
Answers (1)
In the long run, a representative firm in a monopolistically competitive industry will end up multiple choice having an elasticity of demand that will be less than it was in the short run.
Answers (1)
The government determines prices for goods and services in what kind of economy?
Answers (2)