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Westerville Company reported the following results from last years operations:

Sales	$ 2,300,000
Variable expenses	670,000
Contribution margin	1,630,000
Fixed expenses	1,170,000
Net operating income	$ 460,000
Average operating assets	$ 1,437,500

At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics:

Sales	$ 460,000
Contribution margin ratio	50	% of sales
Fixed expenses	$ 161,000

The companys minimum required rate of return is 15%.

1. What is last years margin?

2. What is last years turnover?

3. What is last years return on investment (ROI)?

4. What is the margin related to this years investment opportunity?

5. What is the turnover related to this years investment opportunity?

11. What is last years residual income?