The Foundational 15 [LO10-1, LO10-2] [The following information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $1,000,000 300,000 700,000 500,000 $ 200,000 $ 625,000 At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: $200,000 Sales Contribution margin ratio Fixed expenses 60% of sales $ 90,000 The company's minimum required rate of return is 15%. Foundational 10-6 6. What is the ROI related to this year's investment opportunity? (Do not round intermediate calculations, Round your answer to the nearest whole percent.) ROI % Foundational 10-7 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 i.e. 0.1234 should be entered as 12.3).) Margin % Foundational 10-8 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.) Turnovo Foundational 10-9 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 (ie. 0.1234 should be entered os 12.3).) ROL Foundational 10-11 11. What is last year's residual income? Residual income es Foundational 10-12 12. What is the residual income of this year's investment opportunity? Residual incomo Foundational 10-13 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