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Westerville Company reported the following results from last years operations:

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

Westerville Company reported the following results from last years operations:

Sales	$	1,800,000
Variable expenses		740,000
Contribution margin		1,060,000
Fixed expenses		700,000
Net operating income	$	360,000
Average operating assets	$	1,200,000

This year, the company has a $400,000 investment opportunity with the following cost and revenue characteristics:

Sales	$	600,000
Contribution margin ratio		60	% of sales
Fixed expenses	$	288,000

The companys 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?

This year, the company has a $400,000 investment opportunity with the following cost and revenue characteristics:

Sales	$	600,000
Contribution margin ratio		60	% of sales
Fixed expenses	$	288,000

The companys minimum required rate of return is 10%.

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., 0.1234 should be considered as 12.3%.))