Sales $ 1,400,000 Variable expenses 720,000 Contribution margin 680,000 Fixed expenses 470,000 Net operating income $ 210,000 Average operating assets $ 875,000

This year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics: Sales $ 560,000 Contribution margin ratio 70 % of sales Fixed expenses $ 336,000 The companys minimum required rate of return is 15%. 1. What is last years margin? 2. What is last years turnover? 3.What is last years return on investment (ROI)? 4.What is the margin related to this years investment opportunity? 5.What is the turnover related to this years investment opportunity? 6.What is the ROI related to this years investment opportunity? 7. If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year?