[The following information applies to the questions displayed below.] Westerville Company reported the following results from...
[The following information applies to the questions displayed below.]
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%.
1. What is last year’s margin?
2. What is last year’s turnover? (Round your answer to 1 decimal place.)
3. What is last year’s return on investment (ROI)?
| 4. |
What is the margin related to this year’s investment opportunity? |
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Westerville Company reported the following results from...
Westerville Company reported the following results from last year's operations: Sales Variable expenses $1,500,000 730.000 Contribution...
Westerville Company reported the following results from last year's operations: Sales Variable expenses $1,500,000 730.000 Contribution margin Fixed expenses 770.000 470,000 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 Contribution margin ratio Fixed expenses $580,000 70 % of sales $319,000 The company's minimum required rate of return is 10%. Required: What is the margin related to this year's investment opportunity? Margin
[The following information applies to the questions displayed below.] Westerville Company reported the following results from...
[The following information applies to the questions displayed below.] Westerville Company reported the following results from last year’s operations: Sales $ 1,300,000 Variable expenses 440,000 Contribution margin 860,000 Fixed expenses 600,000 Net operating income $ 260,000 Average operating assets $ 812,500 At the beginning of this year, the company has a $162,500 investment opportunity with the following cost and revenue characteristics: Sales $ 260,000 Contribution margin ratio 80 % of sales Fixed expenses $ 182,000 The company’s minimum required rate...
Required information [The following information applies to the questions displayed below.] Westerville Company reported the following...
Required information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year’s operations: Sales $ 1,000,000 Variable expenses 300,000 Contribution margin 700,000 Fixed expenses 500,000 Net operating income $ 200,000 Average operating assets $ 625,000 At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: Sales $ 200,000 Contribution margin ratio 60 % of sales Fixed expenses $ 90,000 The company’s minimum...
[The following information applies to the questions displayed below.] Westerville Company reported the following results from...
[The following information applies to the questions displayed below.] Westerville Company reported the following results from last year’s operations: Sales $ 1,000,000 Variable expenses 300,000 Contribution margin 700,000 Fixed expenses 500,000 Net operating income $ 200,000 Average operating assets $ 625,000 At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: Sales $ 200,000 Contribution margin ratio 60 % of sales Fixed expenses $ 90,000 The company’s minimum required rate...
Required information [The following Information applies to the questions displayed below] Westerville Company reported the following...
Required information [The following Information applies to the questions displayed below] Westerville Company reported the following results from last year's operations: $ 1.200.000 220.000 BUO,000 Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets 640,000 240,000 600.000 $ At the beginning of this year, the company has a $150,000 Investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 240,000 50% of sales $ 84,000 The company's minimum required rate...
[The following information applies to the questions displayed below.] Westerville Company reported the following results from...
[The following information applies to the questions displayed below.] Westerville Company reported the following results from last year’s operations: Sales $ 1,300,000 Variable expenses 440,000 Contribution margin 860,000 Fixed expenses 600,000 Net operating income $ 260,000 Average operating assets $ 812,500 At the beginning of this year, the company has a $162,500 investment opportunity with the following cost and revenue characteristics: Sales $ 260,000 Contribution margin ratio 80 % of sales Fixed expenses $ 182,000 The company’s minimum required rate...
Required information [The following Information applies to the questions displayed below.) Westerville Company reported the following...
Required information [The following Information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,200.000 320,000 BBO,000 640.000 240,000 600,000 At the beginning of this year, the company has a $150,000 Investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 240,000 50% of sales $ 84,000 The company's minimum required rate of...
Westerville Company reported the following results from last year’s operations:
Capture.PNGWesterville Company reported the following results from last year’s operations: Sales$1,500,000 Variable expenses650,000 Contribution margin850,000 Fixed expenses580,000 Net operating income$ 270,000 Average operating assets$1,000,000 This year, the company has a $160,000 investment opportunity with the following cost and revenue characteristics: Sales$240,000 Contribution margin ratio70 % of sales Fixed expenses$144,000The company’s minimum required rate of return is 10%. 13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn
[The following information applies to the questions displayed below.) Westerville Company reported the following results from...
[The following information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,000,000 300,000 700, eee 500,000 $ 200,000 $ 625,888 At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenu characteristics: Sales Contribution margin ratio Fixed expenses $ 200,00 60% of sales $ 90,000 The company's minimum required rate...
Required Information [The following Information applies to the questions displayed below.) Westerville Company reported the following...
Required Information [The following Information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,200,000 320.000 UBO,000 640,000 $ 240,000 $ 600,000 At the beginning of this year, the company has a $150,000 Investment opportunity with the following cost and revenue characteristics: $ 240,000 Sales Contribution margin ratio Fixed expenses 50% of sales $ 84,000 The company's minimum required...
Westerville Company reported the following results from last year's operations: Sales Variable expenses $1,500,000 730.000 Contribution margin Fixed expenses 770.000 470,000 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 Contribution margin ratio Fixed expenses $580,000 70 % of sales $319,000 The company's minimum required rate of return is 10%. Required: What is the margin related to this year's investment opportunity? Margin
Required information [The following Information applies to the questions displayed below] Westerville Company reported the following results from last year's operations: $ 1.200.000 220.000 BUO,000 Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets 640,000 240,000 600.000 $ At the beginning of this year, the company has a $150,000 Investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 240,000 50% of sales $ 84,000 The company's minimum required rate...
Required information [The following Information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,200.000 320,000 BBO,000 640.000 240,000 600,000 At the beginning of this year, the company has a $150,000 Investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 240,000 50% of sales $ 84,000 The company's minimum required rate of...
[The following information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,000,000 300,000 700, eee 500,000 $ 200,000 $ 625,888 At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenu characteristics: Sales Contribution margin ratio Fixed expenses $ 200,00 60% of sales $ 90,000 The company's minimum required rate...
Required Information [The following Information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,200,000 320.000 UBO,000 640,000 $ 240,000 $ 600,000 At the beginning of this year, the company has a $150,000 Investment opportunity with the following cost and revenue characteristics: $ 240,000 Sales Contribution margin ratio Fixed expenses 50% of sales $ 84,000 The company's minimum required...
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