Sales $ 1,500,000 Variable expenses

650,000 Contribution margin

850,000 Fixed expenses

580,000 Net operating income

$ 270,000 Average operating assets

$ 1,000,000 This year, the company has a $160,000 investment opportunity with the following cost and revenue characteristics: Sales $ 240,000 Contribution margin ratio 70 % of sales Fixed expenses $ 144,000 The companys minimum required rate of return is 10%.

1) What is the ROI related to this years investment opportunity?

2) If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year?

3) If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year?

4) If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%.))