! 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 $ 2,200,000 660,000 1,540,000 1,100,000 $ 440,000 $ 1,375,000 At the beginning of this year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 440,000 60 % of sales $ 220,000 The company's minimum required rate of return is 15%. 10-a. If Westerville's chief executive officer will earn a bonus only if her ROI from this year exceeds her ROI from last year, would she pursue the investment opportunity? O Yes O No 10-b. Would the owners of the company want her to pursue the investment opportunity? O Yes 11. What is last year's residual income? Residual income 14. 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? O Yes O No 15-a. Assume that the contribution margin ratio of the investment opportunity was 55% 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? O Yes O No 15-b. Would the owners of the company want her to pursue the investment opportunity? O Yes O No