19 Part 13 of 15 0.45 points eBook Print References Required information [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 $1,200,000 420,000 780,000 600,000 $100,000 $600,000 At the beginning of this year, the company has a $137,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $220,000 60 of sales $ 99,000 The company's minimum required rate of return is 20%. 13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year? 20 Part 14 of 15 0.45 points eBook Print References [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 $ 1,200,000 420,000 780,000 600,000 $ 180,000 $ 600,000 At the beginning of this year, the company has a $137,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $220,000 $ 99,000 60 of sales The company's minimum required rate of return is 20%. 14. 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 pursue the investment opportunity? Yes No