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  3. craycraft inc. reported the following results from

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:

  1. What was last year's margin? (Round to the nearest 0.1%.)

  1. What was last year's turnover? (Round to the nearest 0.01.)

  1. What was last year's return on investment (ROI)? (Round to the nearest 0.1%.)

  2. 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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