Required information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales $ 1, 800, 000 Variable expenses 740,000 Contribution margin 1, 060, 900 Fixed expenses 700, 900 Net operating income $ 360,000 Average operating assets $ 1, 200, 000 At the beginning of this year, the company has a $400,000 investment opportunity with the following cost and revenue characteristics: Sales $ 600, 000 Contribution margin ratio 60 % of sales Fixed expenses $ 288, 000 The company's minimum required rate of return is 10%. 13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year? Residual incomeRequired information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales $ 1, 800, 000 Variable expenses 740, 900 Contribution margin 1, 060, 000 Fixed expenses 700, 909 Net operating income $ 360, 090 Average operating assets $ 1, 200, 000 At the beginning of this year, the company has a $400,000 investment opportunity with the following cost and revenue characteristics: Sales $ 600,000 Contribution margin ratio 60 % of sales Fixed expenses $ 288, 000 The company's minimum required rate of return is 10%. 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 NoRequired information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales $ 1, 800, 000 Variable expenses 740, 000 Contribution margin 1, 060, 900 Fixed expenses 700, 900 Net operating income $ 360,900 Average operating assets $ 1, 200, 000 At the beginning of this year, the company has a $400,000 investment opportunity with the following cost and revenue characteristics: Sales $ 600, 000 Contribution margin ratio 60 % of sales Fixed expenses $ 288, 000 The company's minimum required rate of return is 10%. 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? O Yes O No 15-b. Would the owners of the company want her to pursue the investment opportunity? O Yes O No