[The following information applies to the questions displayed below.]

Westerville Company reported the following results from last years operations:

Sales	$	1,400,000
Variable expenses		510,000
Contribution margin		890,000
Fixed expenses		610,000
Net operating income	$	280,000
Average operating assets	$	875,000

This year, the company has a $175,000 investment opportunity with the following cost and revenue characteristics:

Sales	$	280,000
Contribution margin ratio		50	% of sales
Fixed expenses	$	98,000

The companys minimum required rate of return is 15%.

5.	What is the turnover related to this years investment opportunity? (Round your answer to 1 decimal place.) Turnover;

6.	What is the ROI related to this years investment opportunity? ROI; %

7.	If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year? (Round your percentage answer to 1 decimal place (i.e .1234 should be entered as 12.3)) Margin; %

8.	If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year? (Round your answer to 2 decimal places.) Turnover;

9.	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 .1234 should be entered as 12.3)) ROI; %

11.	What is last years residual income? Residual income;

12.	What is the residual income of this years investment opportunity? Residual income;

13.	If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year? Residual income;