[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 At the beginning of this year, the company has a $162,500 investment opportunity with the following cost and reve characteristics: Sales $ 1,300,000 440,000 860,000 600,000 $ 260,000 $ 812,500 Contribution margin ratio Fixed expenses $ 260,000 80 % of sales $ 182,000 The company's minimum required rate of return is 15%. 2. What is last year's turnover? Note: Round your answer to 1 decimal place.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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[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
At the beginning of this year, the company has a $162,500 investment opportunity with the following cost and revenue
characteristics:
Sales
$ 1,300,000
440,000
860,000
600,000
$ 260,000
$ 812,500
Contribution margin ratio
Fixed expenses
$ 260,000
80 % of sales
$ 182,000
The company's minimum required rate of return is 15%.
2. What is last year's turnover?
Note: Round your answer to 1 decimal place.
Transcribed Image Text:[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 At the beginning of this year, the company has a $162,500 investment opportunity with the following cost and revenue characteristics: Sales $ 1,300,000 440,000 860,000 600,000 $ 260,000 $ 812,500 Contribution margin ratio Fixed expenses $ 260,000 80 % of sales $ 182,000 The company's minimum required rate of return is 15%. 2. What is last year's turnover? Note: Round your answer to 1 decimal place.
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