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

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If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year? If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? What is the residual income of this years investment opportunity? If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year?

Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets 1,000, 000 $1,500, 000 500,000 1,000, 000 700, $300, 000 At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics Sales Contribution margin ratio Fixed expenses $ 300, 0 60% of sales 132,00o The company's minimum required rate of return is 10%

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