Westerville Company reported the following results from last years operations:

Sales $1,500,000

Variable expenses 650,000

Contribution margin 850,000

Fixed expenses 580,000

Net operating income 270,000

Average operating assets 1,000,000

This year, the company has a $160,000 investment opportunity with the following cost and revenue characteristics:

Sales 240,000

Contribution margin ratio 70% of sales

Fixed expenses 144,000

The companys minimum required rate of return is 10%

1-1. What is the % for last years margin?

1-2. What is last years turnover? (Round your answer to 1 decimal place.)

1-3. What is last years return on investment (ROI)? ROI______%

1-4. What is the margin % related to this years investment opportunity?

1-5. What is the turnover related to this years investment opportunity? (Round your answer to 1 decimal place.)

1-6. What is the ROI related to this years investment opportunity? ROI______%

1-7. 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))

1-8. 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.)

1-9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (Round your percentage answer to 1 decimal place (i.e .1234 should be entered as 12.3))

1-11. What is last years residual income?

1-12. What is the residual income of this years investment opportunity?

1-13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year?