Westerville Company reported the following results from last years operations:

Sales $ 1,300,000

Variable expenses 440,000

Contribution margin 860,000

Fixed expenses 600,000

Net operating income $ 260,000

Average operating assets $ 812,500

This year, the company has a $162,500 investment opportunity with the following cost and revenue characteristics:

Sales $ 260,000 Contribution margin ratio 80 % of sales

Fixed expenses $ 182,000

The companys minimum required rate of return is 15%.

1.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 .1234 should be entered as 12.3)) Margin______________%

2.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.) Turnover_________