[The following information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: Sales $ 1,500,000 Variable expenses 500,000 Contribution margin 1,000,000 Fixed expenses 700,000 Net operating income $ 300,000 Average operating assets $ 1,800,000 At the beginning of this year, the company has a $200.000 investment opportunity with the following cost and revenue characteristics Sales $ 300,000 Contribution margin ratio 60 % of Sales Fixed expenses $ 132,000 The company's minimum required rate of return is 10% 11. What is last year's residual income? Residual income 12. What is the residual income of this year's investment opportunity? Answer is complete but not entirely correct. Residual income $ 48,000 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 lational 10-1 (Algo) Required: 1. What is last year's margin? Margin %