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What is the margin, turnover and ROI if the existing company performs the same next year AND it adds the proposed investment? Paul company has the following data for its most recent year end: Sales                          $1,400,000 Variable Expenses      $756,000 Contribution Margin  $644,000 Fixed Expenses           $410,000 NOI                             $234,000 AIso Paul is considering an investment in new equipment that will cost $250,000. The new equipment is projected to produce saIes of $420,000 and have variabIe costs of 60% of sales and fixed costs of $114,000.

What is the margin, turnover and ROI if the existing company performs the same next year AND it adds the proposed investment? Paul company has the following data for its most recent year end: Sales                          $1,400,000 Variable Expenses      $756,000 Contribution Margin  $644,000 Fixed Expenses           $410,000 NOI                             $234,000 AIso Paul is considering an investment in new equipment that will cost $250,000. The new equipment is projected to produce saIes of $420,000 and have variabIe costs of 60% of sales and fixed costs of $114,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the margin, turnover and ROI if the existing company performs the same next year AND it adds the proposed investment?

Paul company has the following data for its most recent year end:

Sales                          $1,400,000

Variable Expenses      $756,000

Contribution Margin  $644,000

Fixed Expenses           $410,000

NOI                             $234,000

AIso Paul is considering an investment in new equipment that will
cost $250,000. The new equipment is projected to produce saIes of
$420,000 and have variabIe costs of 60% of sales and fixed costs of
$114,000.

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