Westerville Company reported the following results from last year's operations: COI Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets At the beginning of this year, the company has a $300,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 1,400,000 680,000 720,000 440,000 $ 280,000 $ 875,000 $ 480,000 $ 336,000 The company's minimum required rate of return is 15%. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (Do t round intermediate calculations. Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 37.3 % 80% of sales
Westerville Company reported the following results from last year's operations: COI Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets At the beginning of this year, the company has a $300,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 1,400,000 680,000 720,000 440,000 $ 280,000 $ 875,000 $ 480,000 $ 336,000 The company's minimum required rate of return is 15%. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (Do t round intermediate calculations. Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 37.3 % 80% of sales
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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