Westerville Company reported the following results from last years operations:

Sales	$ 1,500,000
Variable expenses	730,000
Contribution margin	770,000
Fixed expenses	470,000
Net operating income	$ 300,000
Average operating assets	$ 937,500

At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics:

Sales	$ 580,000
Contribution margin ratio	70	% of sales
Fixed expenses	$ 319,000

The companys minimum required rate of return is 10%.

6. What is the ROI related to this years 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?