Sales Thrasher Company reported the following results from last year's operations: $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 This year, the company has identified a $237,500 investment opportunity with the following costs and revenue: Sales $380,000 Contribution margin ratio 50% Fixed expenses $133,000 The company's minimum required rate of return is 15%. 13 Which of the following statements is true? A. If Thrasher's chief executive officer's (CEO's) bonus is based on ROI, then she would pursue the investment opportunity. B. If Thrasher's CEO's bonus is based on ROI, then she would NOT pursue the investment opportunity because the ROI on the new investment opportunity is less than the company's minimum required rate of return. C. If Thrasher's CEO's bonus is based on residual income, then she would pursue the investment opportunity. D. If Thrasher's CEO's bonus is based on residual income, then she would NOT pursue the investment opportunity E. Regardless how her bonus is determined, the CEO would pursue the investment opportunity because it is good for the company