I understand how to do some of these, but not all. I have attached the answers to what I got but am confused at questions regarding the investment opportunities.

Westerville Company reported the following results from last year 2013 operations:

Sales $ 1,000,000

Variable expenses 300,000

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Contribution margin 700,000

Fixed expenses 500,000

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Net operating income $ 200,000

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Average operating assets $ 625,000

This year the company has a $120,000 investment opportunity with the following cost and revenue characteristics:

Sales $ 200,000

Contribution margin ratio 60 % of sales

Fixed expenses $ 90,000

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The companys minimum required rate of return is 15%.

1. What is last year's margin? 20%

2. What is last year's turnover? 1.60

3. What is last year's ROI? 32%

4. What is the margin related to this year's investment opportunity?

5. What is the turnover related to this year's investment opportunity?

6. What is the ROI related to this year's investment opportunity?

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

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

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

10. If Westervilles CEO will earn a bonus only if her ROI from this year exceeds last year, would she pursue the investment opportunity? Would the owners of the company want her to pursue the investment opportunity?

11. Whats last years residual income?

12. What is the residual income of this years investment opportunity?

13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year?

14. If Westervilles CEO 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?

15. Assume that the contribution margin ratio of the investment opportunity was 50% instead of 60%. If Westervilles CEO will earn a bonus only if her residual income from this year exceeds her RI from last year, would she pursue the investment opportunity? Would the owners want her to pursue the investment opportunity?