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?

Consider the scenario below and let us know if you believe lauren smith's actions to be ethical. let us know why or why not. lauren smith is the controller for sports central, a chain of sporting goods stores. she has been asked to recommend a site for a new store. lauren has an uncle who owns a shopping plaza in the area of town where the new store is to be located, so she decides to contact her uncle about leasing space in his plaza. lauren also contacted several other shopping plazas and malls, but her uncle’s store turned out to be the most economical place to lease. therefore, lauren recommended locating the new store in her uncle’s shopping plaza. in making her recommendation to management, she did not disclose that her uncle owns the shopping plaza. if management decided to go with lauren's uncle's plaza, what additional information would be needed in the financial statements?

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)

Kubin company’s relevant range of production is 24,000 to 31,000 units. when it produces and sells 27,500 units, its average costs per unit are as follows: