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Required information The Foundational 15 (Algo) (L011-1, LO11-2) (The following information applies to the questions displayed below.) Westerville Company reported the following results from last

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Required information The Foundational 15 (Algo) (L011-1, LO11-2) (The following information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: Sales $ 1,900,000 Variable expenses 550,000 Contribution margin 1,350,000 Fixed expenses 875,000 Net operating income $ 475,000 Average operating assets $ 1,187,500 At the beginning of this year, the company has a $237,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 380,000 50 % of sales $ 133,00 The company's minimum required rate of return is 10%. 7. If the company pursues the investment opportunity and otherwise performs the same as ast year, what margin will it earn this year? (Rou your percentage answer to 1 decimal place (i.e 1234 should be entered as 12.3)) 3. If the company pursues the investment opportunity and otherwise performs the same as ast year, what turnover will it earn this year? (Round your answer to 2 decimal places.) 9. If the company pursues the investment opportunity and otherwise performs the same as ast year, what ROI will it earn this year? (Round your percentage answer to 1 decimal place (i.e. 2.1234 should be considered as 12.3%.)) 10. If Westerville's chief executive officer will earr ponus only if her ROI from this year exceeds her ROI from last year, would she pursue the nvestment opportunity? Would the owners of the company want her to pursue the investment Opportunity? 11. What is last year's residual income? 12. What is the residual income of this year's nvestment opportunity? 73. If the company pursues the investment opportunity and otherwise performs the same as ast year, what residual income will it earn this year? 14. If Westerville's chief executive officer will earn ponus only if her residual income from this year exceeds her residual income from last year, woul she pursue the investment opportunity? 15. Assume that the contribution margin ratio of nvestment opportunity was 40% instead of 50% f Westerville's Chief Executive Officer will earn a ponus only if her residual income from this year exceeds her residual income from last year, woul she pursue the investment opportunity? Would th owners of the company want her to pursue the nvestment opportunity

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