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Westerville Company reported the following results from last year's operations: Sales . . . . . . . . . . . . . . . . . . . . . . $1,000,000 Variable expenses . . . . . . . . . . . . . 300,000 Contribution margin . . . . . . . . . . . . 700,000 Fixed expenses . . . . . . . . . . . . . . . 500,000 Net operating income . . . . . . . . . . $ 200,000 Average operating assets . . . . . . . $625,000 This year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: Sales . . . . . . . . . . . . . . . . . . . . . . . . . $200,000 Contribution margin ratio . . . . . . 60% of sales Fixed expenses . . . . . . . . . . . . . . . . . . $90,000 The company's minimum required rate of return is 15%. Required: 1. What is last year's margin? 2. What is last year's turnover? 3. What is last year's return on investment (ROI)? 4. What is the margin related to this year's investment opportunity? 5. What is the turnover related to this year's investment opportunity? 6. What is the ROI related to this year's investment opportunity? 7. If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year? 8. If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year? 9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? 10. If Westerville's chief executive officer will earn a bonus only if her ROI from this year exceeds her ROI from last year, would she pursue the investment opportunity? Would the owners of the company want her to pursue the investment opportunity? 11. What is last year's residual income? 12. What is the residual income of this year's investment opportunity? 13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year? 14. 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? 15. Assume that the Contribution margin ratio of the investment opportunity was 50% instead of 60%. 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? Would the owners of the company want her to pursue the investment opportunity? Contribution Margin 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 If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year? If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? Required informationThe Foundational 15 (Algo) [LO11-1, LO11-2]Skip to question [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year’s operations:
At the beginning of this year, the company has a $175,000 investment opportunity with the following cost and revenue characteristics:
The company’s minimum required rate of return is 15%. Foundational 11-8 (Algo)8. If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year? (Round your answer to 2 decimal places.)  Q: An industry consists of four firms with annual sales of $4,000, $6,000, $5,500, and $7,000. What is… A: HHI = Sum of (Market share of each firm%^2) Q: 19. The following selected data for BC Company for 2022: Sales P 2,000,000 Variable Costs 1,200,000… A: The return on investment is used to evaluate the return provided by the investment. The return on… Q: E7.11 For Domino's Pizza (DPZ), the following information on the past 5 years' revenues can be found… A: Domino's Pizza's Total revenues for year 2014 = $1993.8 year 2015 = $2216.5 year 2016 = $2472.6 year… Q: 10. 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It… Knowledge Booster Learn more about Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below. Oreo reported the following for the period:Sales P1,000,000Cost of Sales P300,000Operating expenses P100,000Determine the OSD assuming that Oreo is a corporation 10. In 2021, Segment X of Special Company had sales of P5,000,000 (represents 30% of the total company’s sales), and had traceable costs of P3,200,000. Special also incurred segments costs of P400,000 that were not traceable to any of the divisions. Segment X incurred impairment loss of P600,000, an amount which is considered material. What amount should be reported as Segment X’s profit for 2021? A. 1,800,000 B. 1,680,000 C. 1,080,000 D. 800,000 E. None of them 2. Brill Company made the following expenditures during the current year: Costs to develop computer software for internal use in Brill’s general management information system: 1 000 000 Cost of market research activities 750 000 Brill Company’s total Expense? The following results are available for Division X and Y:Division X Division YProfit before interest and tax P185 000 P172, 000Capital employed P1, 540, 000 P1, 650, 000The cost of capital is 10%.Calculate and comment on the performance of the departments based on:a. Return on capital employed (4 marks)b. Residual incom An entity reported revenue of P50,000,000, excluding intersegment sales of P10,000,000, expenses of P47,000,000 and net income of P3,000,000 for the current year. Expenses included payroll costs of P15,000,000. The combined asset of all segment totaled P45,000,000 1. What is the minimum amount of sales to a major customer? a. 5,000,000 b. 4,000,000 c. 4,500,000 d. 6,000,000 2. What is the minimum amount of external revenue to be disclosed by reportable segments? a. 30,000,000 b. 45,000,000 c. 33,750,000 d. 37,500,000 3. JOI Corporation, a manufacturer, has a gross sales of P90,000,000.00 for CY2021, its fifth year of operations. Its total assets amounted to P50,000,000.00,net of the value of the land of P6,000,000.00 where its manufacturing plant andbusiness operations are situated. Its cost of sales and allowable operatingexpenses amounted to P50,000,000.00 and P40,000,000.00, respectively.Compute for its income tax due for CY 2021. 10. Chicken Wings Company reports operating profits as to industry segments in its supplementary financial information annually. The following information is available for 2021 as to the sales and traceable cost, respectively: • Segment 1- P750,000; P450,000 • Segment 2- P500,000; P225,000 • Segment 3- P250,000; P125,000 Additional expense not included above are as follows: • Indirect operating expense- P240,000 • General corporate expense- P180,000 • Interest expense- P96,000 Chicken Wings allocates common costs based on the ratio of segment’s sales to total sales. What would be the operating profit of Segment 1? An entity reported the following information for the year ended December 31, 2020: Sales 7,750,000 Cost of goods sold 2,400,000 Administrative expenses 700,000 Loss on sale of equipment 100,000 Sales commissions 500,000 Interest revenue 450,000 Freight out 150,000 Loss on early extinguishment of long-term debt 200,000 Doubtful accounts expense 150,000 16. What is the income from continuing operations for 2020? a. 4,000,000 b. 3,800,000 c. 2,800,000 d. 2,600,000 17. What net amount of loss should be reported as results of discontinued operations for 2020? a. 1,500,000 b. 1,700,000 c. 1,050,000 d. 1,400,000 18. What is the net income for 2020? a. 2,500,000 b. 1,750,000 c. 1,400,000 d. 1,540,000 The following data are taken from the records of Dove Company, a division of Oasis Corporation for the year ended December 31, 2021 Sales 120,000,000.00Less: Variable Cost and Expenses 8,000,000.00Contribution Margin 4,000,000.00Less:: Direct Fixed Cost and Expenses 1,000,000.00Segment Income 3,000,000.00 The company used an average assets of P8,000,000.00 in 2021. The cost of capital is 12% Calculate the following:1. Return on Sales2. Asset Turnover3. ROI4. Residual Income Refer to the following data of OCT2023CPACompany: Assets to be realized 1,375,000Assets acquired 825,000 Liabilities liquidated 1,875,000Assets realized 1,200,000Liabilities not liquidated 1,700,000 Assets not realized 1,375,000Llabilities assumed 1,625,000Llabilities to be liquidated 2,250,000 Supplementary charges 3,125,000 Supplementary credits 2,800,000 Compute the beginning cash balance assuming that the ending balance of ordinary share and retained earnings are P1,200,000 and (400,000), respectively Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Asset turnover EXCESS CAPACITY Williamson Industries has 7 billion in sales and 1,944 billion in fixed assets. Currently, the companys fixed assets are operating at 90% of capacity. a. What level of sales could Williamsons Industries have obtained if it had been operating at full capacity? b. What is Williamson's target fixed assets/sales ratio? c. If Williamson's sales increase 15%, how large of an increase in fixed assets will the company need to meet its target fixed assets / sales ratio? SEE MORE QUESTIONS Recommended textbooks for you Fundamentals of Financial Management (MindTap Cou... ISBN:9781337395250 Author:Eugene F. Brigham, Joel F. Houston Publisher:Cengage Learning Survey of Accounting (Accounting I) ISBN:9781305961883 Author:Carl Warren Publisher:Cengage Learning Corporate Fin Focused Approach ISBN:9781285660516 Author:EHRHARDT Publisher:Cengage Accounting ISBN:9781337272094 Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E. Publisher:Cengage Learning, Financial & Managerial Accounting ISBN:9781285866307 Author:Carl Warren, James M. Reeve, Jonathan Duchac Publisher:Cengage Learning Fundamentals of Financial Management (MindTap Cou... 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Westerville company reported the following results from last years operations
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