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 720,000

Contribution margin 680,000 Fixed expenses 470,000

Net operating income $ 210,000

Average operating assets $ 875,000

This year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics:

Sales $ 560,000 Contribution margin ratio 70 % of sales Fixed expenses $ 336,000

The companys minimum required rate of return is 15%.

1.What is the margin related to this year's investment opportunity? 2.What is the turnover related to this year's investment opportunity? 3.What is the ROI related to this year's investment opportunity?

4. If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year? 5. If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover fill it earn this year? 6. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? 7.What is last year's residual income? 8. What is the residual income of this year's investment opportunity? 9. If the company pursues the investment opportunity and otherwise performs the same as last year, what will the residual income earn this year?