Required information
The Foundational 15 (Algo) [LO10-1, LO10-2]
[The following information applies to the questions displayed below.]
Westerville Company reported the following results from last year's operations:
Sales $ 1,500,000
Variable expenses 730,000
Contribution margin 770,000
Fixed expenses 470,000
Net operating income $ 300,000
Average operating assets $ 937,500
At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics:
Sales $ 580,000
Contribution margin ratio 70 % of sales
Fixed expenses $ 319,000
The company's minimum required rate of return is 10%.
Foundational 10-1 (Algo)
Required:
1. What is last year's margin?
Margin %
