r 11 Homework Required information The following information applies to the ques

Question

r 11 Homework Required information The following information applies to the questions displayed belowJ Westerville Company reported the following results from last year's operations of 15 Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $1,500,000 500,80G 1,600,e00 700,000 300,000 $1,900,000 At the beginning of this year,the company has a $200,000 investment opportunity with the following cost and revenue characteristics Sales $300,600 Contribution margin ratio 68% of sales Fixed expenses $132,000 The company's minimum required rate of return is 10% 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.)

Explanation / Answer

8 Turnover = Sales/Average operating assets = (1500000+300000)/(1000000+200000)= 1.5

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