102-UNIT 3 REVIEW: CHAPTERS 7, 8 and 9 Name: 30. The following information relates to the Apparel Division of ReNew Enterprises Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets Minimum required rate of return $700,000 385,000 $315,000 87,000 228,000 $1,750,000 12% Assume that the manager of the Apparel Division is evaluated solely on the basis of residual Income, would she pursue a $500,000 investment opportunity with the following revenue and cost characteristics: Sales Variable expenses Fixed expenses $200,000 $112,000 $18,000 Show your work as evidence to support your answer. Refer to the information in question #30, but this time assume that the manager of the Apparel Division is evaluated solely on the basis of return on investment. Would she pursue the $500,000 investment opportunity. Show your work as evidence to support your answer. --31