The Foundational 15 (Algo) (L010-1, LO10-2] (The following information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: Sales $ 2,300,000 Variable expenses 670,000 Contribution margin 1,630,000 Fixed expenses 1,170,000 Net operating income $ 460,000 Average operating assets $ 1,437,500 At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics Sales $ 460,000 Contribution margin ratio SO % of sales Fixed expenses $ 161,000 The company's minimum required rate of return is 15% Required: 1. What is last year's margin? ces Maligin % 2. What is last year's turnover? Turnover Foundational 10-3 (Algo) 3. What is last year's return on investment (ROI)? (Round your ROI % 4. What is the margin related to this year's investment opportunity? Margin % Foundational 10-5 (Algo) 5. What is the turnover related to this year's investment opportunity? (Round Turnover Foundational 10-6 (Algo) 6. What is the ROI related to this year's investment opportunity? ROI % Foundational 10-7 (Algo) 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 (l.e., 0.1234 should be entered as 18.3).) Margin % Foundational 10-8 (Algo) 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.) Tumoves 9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (Do not round intermediate calculations. Round your percentage answer to 1 decimal place (1.0.0.1234 should be entered as 12.3).) ROL % Foundational 10-10 (Algo) 15 10-a. If Westerville's chief executive officer will earn a bonus only if her Rol from this year exceeds her Rol from last year, would sh pursue the investment opportunity? O Yes O No 10-b. Would the owners of the company want her to pursue the investment opportunity? O Yes O NO 11. What is last year's residual income? Residual income Foundational 10-12 (Algo) 12. What is the residual income of this year's investment opportunity? Residual income Foundational 10-13 (Algo) 13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual Income will it eam this year? Rodol como Foundational 10-14 (Algo) 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? O Yes O NO Foundational 10-15 (Algo) 15-a Assume that the contribution margin ratio of the investment opportunity was 40% Instead of 50% 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? O Yes O NO 15-b. Would the owners of the company want her to pursue the investment opportunity? O Yes O No