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 $ 1,750,000 520,000 Contribution margin Fixed expenses 1,230,000 880,000 Net operating income $ 350,000 Average operating assets $ 875,000 This year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 320,000 60 % of sales $ 128,000 The company's minimum required rate of return is 20%. 3. What is last year's return on investment (ROI)? ROI % 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? No Yes 10-b. Would the owners of the company want her to pursue the investment opportunity? Yes