Louisville Company reported the following results from last year's operations Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $1,000,000 300,000 700,000 500,000 At the beginning of this year, the company has a new $120,000 investment opportunity with the following cost and revenue characteristics $200,000 60% of sales Sales Contribution margin ratio Fixed expenses The company's minimum rate of return is 15%. INSTRUCTIONS: $90,000 1) What is last year's margin? 2) What is last year's turnover? 3) What is last year's return on investment (ROI)? 4) What is the company's residual income for last year? 5) What is the margin related to this year's new investment opportunity? (Hint: Using the new opportunity information, set up an income statement similar to last year's statement and then calculate the margin.) 6) What is the turnover related to this year's new investment opportunity? 7) What is the ROI related to this year's investment opportunity? 8) What is the residual income of this year's new investment opportunity? 9) If the company pursues the new investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? 10) Should the company accept the new investment opportunity? Explain