Question

I really need a help please. Thank you.

The Foundational 15 (LO10-1, LO10-2] (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 $1,000,000 300,000 700,000 500,000 $ 200,000 $ 625,000 At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics:

Answer 1

Answer 1.

Net Profit Margin (Last Year)

= Net Operating Income/ Sales x 100

= 200000/1000000 x 100

=20.00 %

Answer 2.

Last years turnover refers to sales turnover which was $1,000,000/-

Answer 3.

Return on Investment (%) for (Last Year)

= Net Operating Income/ Investment x 100

= 200000/625000 x 100

= 32.00 %

.

Statement showing this year's details

Particulars	Amounts ($)	(% of Sales)
Sales	200000	100%
Variable Expenses	80000	40%
Contribution Margins	120000	60%
Fixed Expenses	90000	45%
Net Operating incomes	30000	15%

.

Answer 4.

Net Profit Margin (This Year)

= Net Operating Income/ Sales x 100

= 30,000/200,000 x 100

=15.00 %

Answer 5.

The turnover related to this year's investment opportunity is $200,000/-

Answer 6.

Return on Investment (%) for (This Year)

= Net Operating Income/ Investment x 100

= 30,000/120,000 x 100

= 25.00 %