Maps News Web Store Translate Yahoo Saved Help Save & Exit s 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 $ 1,750,000 520,000 1,230,000 880,000 $ 350,000 $ 875,000 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 $ 320,000 60% of sales $ 128,000 The company's minimum required rate of return is 20%. 15. Assume that the contribution marain ratio of the investment opportunity was 50% instead of 60%. If 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 $ 320,000 608 of sales $ 128,000 The company's minimum required rate of return is 20%. 15-a. Assume that the contribution margin ratio of the investment opportunity was 50% instead of 60%. 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 15-b. Would the owners of the company want her to pursue the investment opportunity? Yes No