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The Foundational 15 (Static) [LO10-1, LO10-2) [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations:
The Foundational 15 (Static) [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: Sales Contribution margin ratio Fixed expenses $ 200,000 60 % of sales $ 90,000 The company's minimum required rate of return is 15%. Foundational 10-10 (Static) 10-a. If Westerville's chief executive officer will earn a bonus only if her ROI from this year exceeds her ROI from last year, would she pursue the investment opportunity? 0 Yes O No
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