Westerville Company reported the following results from last year’s operations: Sales $ 1,200,000 Variable expenses 320,000 Contribution margin 880,000 Fixed expenses 640,000 Net operating income $ 240,000 Average operating assets $ 600,000 At the beginning of this year, the company has a $150,000 investment opportunity with the following cost and revenue characteristics: Sales $ 240,000 Contribution margin ratio 50 % of sales Fixed expenses $ 84,000 The company’s minimum required rate of return is 15%.   5. What is the turnover related to this year’s investment opportunity?   6. What is the ROI related to this year’s investment opportunity?

Cabell Products is a division of a major corporation. Last year the division had total sales of $11,650,000, net operating income of $1,141,700, and average operating assets of $3,495,000. The company's minimum required rate of return is 11%. The division's residual income is closest to: Multiple Choice $1,141,700 $1,526,150 $757,250 $(768,900)

Westerville Company reported the following results from last year’s operations: Sales $ 1,500,000 Variable expenses 690,000 Contribution margin 810,000 Fixed expenses 435,000 Net operating income $ 375,000 Average operating assets $ 1,250,000 At the beginning of this year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics: Sales $ 420,000   Contribution margin ratio 70 % of sales Fixed expenses $ 252,000   The company’s minimum required rate of return is 10%. 1. Assume that the contribution margin ratio of the investment opportunity was 65% instead of 70%. If Westerville’s Chief Executive Officer will earn a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the investment opportunity? yes or no 2.  Would the owners of the company want her to pursue the investment opportunity?

Westerville Company reported the following results from last year’s operations:   Sales $ 1,800,000 Variable expenses 740,000 Contribution margin 1,060,000 Fixed expenses 700,000 Net operating income $ 360,000 Average operating assets $ 1,200,000   At the beginning of this year, the company has a $400,000 investment opportunity with the following cost and revenue characteristics:   Sales $ 600,000   Contribution margin ratio 60 % of sales Fixed expenses $ 288,000     The company’s minimum required rate of return is 10%.   6. What is the ROI related to this year’s investment opportunity? (Do not round intermediate calculations.)   7. If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year? (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)   8. If the company pursues the investment opportunity and otherwise performs the same as last year,…

A firm operated at 90% of capacity for the past year, during which fixed costs were $420,000, variable costs were 40% of sales, and sales were $1,000,000. Operating profit was: Answer a. $980,000 b. $420,000 c. $1,080,000 d. $180,000

Waffle Fries are Heavenly (WFH) has the following financial information for the previous year of operations: Operating income $128,000 Invested assets $800,000 Sales $296,000 WFH has internally set the minimum acceptable rate of return as 15%. Based on the information provided, what is the residual income? Waffle Fries are Heavenly (WFH) has the following financial information for the previous year of operations: Operating income $128,000 Invested assets $800,000 Sales $296,000 WFH has internally set the minimum acceptable rate of return as 15%. Based on the information provided, what is the residual income? $8,000 $83,600 $176 $128,000

Westerville Company reported the following results from last year’s operations:   Sales $ 1,800,000 Variable expenses 740,000 Contribution margin 1,060,000 Fixed expenses 700,000 Net operating income $ 360,000 Average operating assets $ 1,200,000   At the beginning of this year, the company has a $400,000 investment opportunity with the following cost and revenue characteristics:   Sales $ 600,000   Contribution margin ratio 60 % of sales Fixed expenses $ 288,000     The company’s minimum required rate of return is 10%.   2. What is last year’s turnover? (Round your answer to 1 decimal place.)   3. What is last year’s return on investment (ROI)? (Round your intermediate calculations to 1 decimal place.)   4. What is the margin related to this year’s investment opportunity?   5. What is the turnover related to this year’s investment opportunity? (Round your answer to 1 decimal place.)