The Scarf division of Wintertime Inc. reported the following results from last years operations:

Sales	$1,000,000
Variable expenses	700,000
Contribution margin	300,000
Fixed expenses	200,000
Net operating income	$100,000
Average operating assets	$1,000,000

At the beginning of the year the Scarf division had a $200,000 investment opportunity with the following characteristics:

Sales	$300,000
Contribution margin ratio	40%	of sales
Fixed expenses	$60,000

If the division pursues the investment opportunity and otherwise performs the same as last year, the combined (new) ROI for the division will be closest to:

• 20.00%

• 18.33%

• 13.33%

• 9.17%