1. 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)) 2. If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year? 3. 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., 0.1234 should be considered as 12.3%.))
Westerville Company reported the following results from last year’s operations:
| Sales | $ 1,500,000 |
|---|---|
| Variable expenses | 690,000 |
| Contribution margin | 810,000 |
| Fixed expenses | 435,000 |
| Net operating income | $ 375,000 |
| Average operating assets | $ 1,250,000 |
At the beginning of this year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics:
| Sales | $ 420,000 | |
|---|---|---|
| Contribution margin ratio | 70 | % of sales |
| Fixed expenses | $ 252,000 |
The company’s minimum required
1. 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))
2. If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year?
3. If the company pursues the investment opportunity and otherwise performs the same as last year, what
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