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Required information Skip to question [The following information applies to the questions displayed below.] Westerville Company reported the following results from last years operations: Sales

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[The following information applies to the questions displayed below.]

Westerville Company reported the following results from last years operations:

Sales $ 1,500,000
Variable expenses 500,000
Contribution margin 1,000,000
Fixed expenses 700,000
Net operating income $ 300,000
Average operating assets $ 1,000,000

At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics:

Sales $ 300,000
Contribution margin ratio 60 % of sales
Fixed expenses $ 132,000

The companys minimum required rate of return is 10%.

6. What is the ROI related to this years investment opportunity? (Do not round intermediate calculations.)

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