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Anuta_ua [19.1K]
3 years ago
10

The Foundational 15 [LO10-1, LO10-2] [The following information applies to the questions displayed below.] Westerville Company r

eported the following results from last year’s operations: Sales $ 2,300,000 Variable expenses 670,000 Contribution margin 1,630,000 Fixed expenses 1,170,000 Net operating income $ 460,000 Average operating assets $ 1,437,500 At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics: Sales $ 460,000 Contribution margin ratio 50 % of sales Fixed expenses $ 161,000 The company’s minimum required rate of return is 15%. Foundational 10-4 4. What is the margin related to this year’s investment opportunity?
Business
1 answer:
Degger [83]3 years ago
8 0

Answer:

Margin = 1%

Explanation:

To calculate the margin related to these year investment opportunity, we use the following method.

Margin = net operating income/ sales

Margin = $460,000/ $ 460,000

Margin = 1%

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AlekseyPX

Answer:

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Explanation:

given data

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solution

we get here first dividend that is

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D3 = 2.54 × (1.05) = 2.67      ...............3

and

year 2 price will be

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P = 2.23 ÷ (1.10) + 2.54 ÷ (1.10)2 + 53.40 ÷ (1.10)2

P = $48.26

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