The following information applies to the questions displayed below Westerville C
ID: 2569163 • Letter: T
Question
The following information applies to the questions displayed below Westerville Company reported the following results from last year's operations: Salos $1,400,000 Varlable expenses 680,000 Contribution margin 720,000 Fixed expenses Net operating Income Average operating assets 440,000 $ 280,000 $ 875,000 This year, the company has a $300,000 Investment opportunity with the following cost and revenue characterlstics Sals Contribution margin ratio Fixed expenses $480,000 80 % of sales $336,000 The company's minimum required rate of return is 15%.Explanation / Answer
4.
Particulars
Amount
Sales
$ 480,000
Contribution Margin @80%
$ 384,000
Less: Fixed Cost
$ (336,000)
Net Operating Income
$ 48,000
Margin %= Net Operating Income / Sales=$48,000/$480,000 x100=10%
Answered first 4
Particulars
Amount
Sales
$ 480,000
Contribution Margin @80%
$ 384,000
Less: Fixed Cost
$ (336,000)
Net Operating Income
$ 48,000
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