Westerville Company reported the following results from last years operations:

Sales	$	1,900,000
Variable expenses		550,000
Contribution margin		1,350,000
Fixed expenses		875,000
Net operating income	$	475,000
Average operating assets	$	1,187,500

This year, the company has a $237,500 investment opportunity with the following cost and revenue characteristics:

Sales	$	380,000
Contribution margin ratio		50	% of sales
Fixed expenses	$	133,000

The companys minimum required rate of return is 10%.

5. What is the turnover related to this year's investment opportunity?

6. What is the ROI related to this year's investment opportunity?

7. If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year?

8. If the company pursues the investment opportnity and otherwise performs the same as last year, what turnover will it earn this year?

9. IF the compmany pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year?

11. What is last year's residual income?

12. What is the residual income of this year's investment opportunity?

13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year>