PLEASE COMPLETE ALL QUESTIONS, NOT SOME OF IT. DO NOT LEAVE PARTIAL ANSWER!!!!!!

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PLEASE COMPLETE ALL QUESTIONS, NOT SOME OF IT.

DO NOT LEAVE PARTIAL ANSWER!!!!!!! PLEASE PLEASE!!

PLEASE COMPLETE ALL QUESTIONS, NOT SOME OF IT.

DO NOT LEAVE PARTIAL ANSWER!!!!!!! PLEASE PLEASE!!

PLEASE COMPLETE ALL QUESTIONS, NOT SOME OF IT.

DO NOT LEAVE PARTIAL ANSWER!!!!!!! PLEASE PLEASE!!

PLEASE COMPLETE ALL QUESTIONS, NOT SOME OF IT.

DO NOT LEAVE PARTIAL ANSWER!!!!!!! PLEASE PLEASE!!

PLEASE COMPLETE ALL QUESTIONS, NOT SOME OF IT.

DO NOT LEAVE PARTIAL ANSWER!!!!!!! PLEASE PLEASE!!

PLEASE COMPLETE ALL QUESTIONS, NOT SOME OF IT.

DO NOT LEAVE PARTIAL ANSWER!!!!!!! PLEASE PLEASE!!

Required informatio The Foundational 15 [LO11-1, LO11-2] [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution marain Fixed expenses Net operating income $1,500,000 730,000 770,000 470,000 $ 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 Contribution margin ratio Fixed expenses 580,000 70% of sales 319,000 The company's minimum required rate of return is 10%.

Explanation / Answer

5. The turnover for this year’s investment opportunity is:

Turnover =Sales / Average operating assets=$1,500,000/ $937,500 = 1.6

6. The ROI for this year’s investment opportunity is:

ROI = Margin × Turnover

= 13.75% × 1.6 =22%

7.If the company pursues the investment opportunity, this year’s margin would be:Margin

=Net operating income /Sales

=$300,000 + $87,000 / $1,500,000 + $580,000

=$348,000

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