Required information [The following information applies to the questions display

Question

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 Pixed expenses Net operating income 2,200,000 660,000 1,540,000 1,100,000 $440,000 Average operating assets 1,375,000 At the beginning of this year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics: 440,000 Sales Contribution margin ratio Fixed expenses 60 of sales 220,000 The company's minimum required rate of return is 15%. 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.?., 01234 should be considered as 12.3%)

Explanation / Answer

9.

Working:

11.

Working:

13.

Working:

ROI 29.3%

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