The manager of a division that produces electronic audio products is considering the opportunity to invest in two independent projects. The first is a portable MP3 player. The second is a voice recorder designed as a module for visor or palm PDAs. Without the investments, the division will have invested capital for the coming year of $18 million and expected operating profit of $2.7 million. The expected contribution margins, fixed expenses and the invested capital required for each investment are as follows:

MP3 Player Voice Recorder Contribution Margin [sales minus variable expenses] $12 $1 E Fixed expens as $1 {1,000 $1 5.131312) Invested Capital $511000