1. what is last year's margin?

2. what is last year's turnover?

3. what is the margin related to this year's investment opportunity?

4. what is the turnover related to this year's investment opportunity?

5. what is the ROI related to this year's investment opportunity?

6. if the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year?

7. if the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year?

8.

a. 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 purse the investment opportunity? yes or no

b. would the owners of the company want her to purse the investment opportunity? yes or no

9. what is the residual income of this year's investment opportunity?

10. 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 purse the investment opportunity? yes or no

The following information applies to the questions displayed below) Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating Income Average operating assets $ 2,000,000 640,000 1,360.000 860,000 500,000 $ 1.250.000 This year, the company has a $250,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 400,000 70% of sales $ 220,000 The company's minimum required rate of return is 10%