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Read carefully and double check with your answer! Westerville Company reported the following results from last year's operations Sales Variable expenses Contribution margin Fixed expenses

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Read carefully and double check with your answer!

Westerville Company reported the following results from last year's operations Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets ,250,000 1,500,000 690,000 810,000 435,000 $375,000 At the beginning of this year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics Sales Contribution margin ratio Fixed expenses $420,000 70% of sales 252,000 The company's minimum required rate of return is 10%. 9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROl will it earn this year? (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%. ROI 10-a. If Westerville's chief executive officer will earn a bonus only if her ROl from this year exceeds her ROl from last year, would she pursue the investment opportunity? Yes O No 10-b. Would the owners of the company want her to pursue the investment opportunity? Yes O No

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