The following information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: 5 Sales Variable expenses Contribution margin Fixed expenses Net operating incone Average operating assets $1,500,000 730,000 770,000 470,000 $ 300,000 $ 937,500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution nargin ratio Fixed expenses $ 580,000 70% of sales $ 319,000 The company's minimum required rate of return is 10% 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 The company's minimu 14. If Westerville's chief executive officer will earn a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the investment opportunity? Yes NO 15-a. Assume that the contribution margin ratio of the investment opportunity was 60% instead of 70%. If Westerville's Chief Executive Officer will earn a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the investment opportunity? Yes No 15-b. Would the owners of the company want her to pursue the investment opportunity? Yes No The following information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: 5 Sales Variable expenses Contribution margin Fixed expenses Net operating incone Average operating assets $1,500,000 730,000 770,000 470,000 $ 300,000 $ 937,500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution nargin ratio Fixed expenses $ 580,000 70% of sales $ 319,000 The company's minimum required rate of return is 10% 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 The company's minimu 14. If Westerville's chief executive officer will earn a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the investment opportunity? Yes NO 15-a. Assume that the contribution margin ratio of the investment opportunity was 60% instead of 70%. If Westerville's Chief Executive Officer will earn a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the investment opportunity? Yes No 15-b. Would the owners of the company want her to pursue the investment opportunity? Yes No