Question

Westerville Company Reported The.. what ROl will it earn Upgrade to macOS Mojave l 2018 6 Get Dark Mode, Stacks, new app new Mac App Store Saved Check my wol 0 Required information [The following information applies to the questions displayed below. Westerville Company reported the following results from last year's operations: $ 2,000,000 Sales Variable expenses Contribution margin Fixed expenses Net operating income 640,000 1,360,000 860,000 $ 500,000 $1,250,000 Average operating assets At the beginning of this year, the company has a $250,000 investment opportunity with the following cost and revenue characteristics: 400,000 Sales Contribution margin ratio Fixed expenses 70% of sales 220,000 The company's minimum required rate of return is 10%. . If the company pursues the investment opport his year? (Round your answer to 2 decimal places.) If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover willit earn Next Prev8 9 10 15o 15 MacBook Pro

Answer 1

Turnover = New sales /New operating assets

= (2,000,000+400,000) / (1,250,000+250,000)

= 2,400,000 / 1,500,000

= 1.6 times