subject
Business, 13.12.2021 19:00 xojade

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
This year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics:

Sales$580,000
Contribution margin ratio70 % of sales
Fixed expenses$319,000
The company's minimum required rate of return is 10%

Required:

2. What is last year's turnover?

3. What is last year's ROI?

4. What is the margin related to this year's investment opportunity?

5. What is the turnover related to this year's investment opportunity?

6. What is the ROI related to this year's investment opportunity?

7. 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))

8.If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year? (Round your answer to 2 decimal places.)

9. 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 .1234 should be entered as 12.3))

11. What is last year's residual income?

12. What is the residual income of this year?s investment opportunity?

13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year?

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 20:10
In three to four sentences, explain the effect of a price ceiling on the quantity of a good and who this intervention intends to assist
Answers: 3
question
Business, 21.06.2019 20:30
The distinction between a normal and an inferior good is
Answers: 3
question
Business, 21.06.2019 21:30
Prepare journal entries for each transaction and identify the financial statement impact of each entry. the financial statements are automatically generated based on the journal entries recorded. apr. 1 tanner invested $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock.apr. 2 the company prepaid $9,000 cash for 12 months' rent for office space. the company's policy is record prepaid expenses in balance sheet accounts.apr. 3 the company made credit purchases for $8,000 in office equipment and $3,600 in office supplies. payment is due within 10 days.apr. 6 the company completed services for a client and immediately received $4,000 cash.apr. 9 the company completed a $6,000 project for a client, who must pay within 30 days.apr. 13 the company paid $11,600 cash to settle the account payable created on april 3.apr. 19 the company paid $2,400 cash for the premium on a 12-month insurance policy. the company's policy is record prepaid expenses in balance sheet accounts.apr. 22 the company received $4,400 cash as partial payment for the work completed on april 9.apr. 25 the company completed work for another client for $2,890 on credit.apr. 28 the company paid $5,500 cash in dividends.apr. 29 the company purchased $600 of additional office supplies on credit.apr. 30 the company paid $435 cash for this month's utility bill.
Answers: 3
question
Business, 22.06.2019 17:00
Oliver is the vice president of production at his company and has been managing the launch of new software systems. he worked with a team of individuals who were tasked to create awareness about a specific product and also to approach potential purchasers of the product. which department managers were part of oliver’s team?
Answers: 3
You know the right answer?
Westerville Company reported the following results from last year's operations: Sales$1,500,000
Questions
question
Mathematics, 08.04.2021 02:40
question
Physics, 08.04.2021 02:40
question
Mathematics, 08.04.2021 02:40
question
Mathematics, 08.04.2021 02:40
question
Biology, 08.04.2021 02:40