20 Part 1 of 5 Required information [The following information applies to the questions displayed below) Westerville Company reported the following results from last year's operations: points Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $2,300,000 670,000 1,630,000 1,170.00 $ 460,000 $1,437,500 At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics Sales Contribution margin ratio Fixed expenses 5460,000 50 % of sales $161,000 The company's minimum required rate of return is 15% 11. What is last year's residual income? Residual income 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 $2,300,000 670,000 1,630,000 1,170,000 $ 460,000 $1,437,500 At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics Sales Contribution margin ratio Fixed expenses $460,000 50 % of sales $161,000 The company's minimum required rate of return is 15% 12. What is the residual income of this year's investment opportunity? Residual income 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 $2,300,000 670,000 1,630,000 1,170,000 $ 460,000 $1,437,500 At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $460,000 50% of sales $161,000 The company's minimum required rate of return is 15%. 13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year? Residual income