Craycraft Inc. reported the following results from last year's operations: ...
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Accounting
Craycraft Inc. reported the following results from last year's operations:
Sales
$12,600,000
Variable expenses
9,380,000
Contribution margin
3,220,000
Fixed expenses
2,716,000
Net operating income
$504,000
Average operating assets
$7,000,000
At the beginning of this year, the company has a $800,000 investment opportunity with the following characteristics:
Sales
$560,000
Contribution margin ratio
50%
of sales
Fixed expenses
$246,400
Required:
What was last year's margin? (Round to the nearest 0.1%.)
What was last year's turnover? (Round to the nearest 0.01.)
What was last year's return on investment (ROI)? (Round to the nearest 0.1%.)
If the company pursues the investment opportunity and otherwise performs the same as last year, what will be the overall margin this year? (Round to the nearest 0.1%.)
* * * Please organize your answer with schedule * * *
* * * Please organize your answer with schedule * * *
* * * Please organize your answer with schedule * * *
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