8 Required information The following information applies to the questions displa

Question

8 Required information The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Part 8 of 15 Sales Variable expenses Contribution margin Fixed expenses Net operating income $1,500,000 500,000 1,000,000 700,000 300,000 perating $1,000,001o points assets At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $300,000 60 $132,000 % of sales 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.) Answer is complete but not Turnover 1800,000.0

Explanation / Answer

Calculate turnover :

Turnover =Sales/operating assets

Sales = 1500000+300000 = 1800000

Operating assets = 1000000+200000 = 1200000

Turnover = 1800000/1200000 = 1.50

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