Help calculating company\'s turnover Westerville Company reported the following

Question

Help calculating company's turnover

Westerville Company reported the following results from last year’s operations:

At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics:

The company’s minimum required rate of return is 20%.

8. If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year?

Sales $ 1,750,000 Variable expenses 520,000 Contribution margin 1,230,000 Fixed expenses 880,000 Net operating income $ 350,000 Average operating assets $ 875,000

Explanation / Answer

8. If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year?

Total turnover = (1750000+320000) = 2070000

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