Westerville Company reported the following results from last years operations:

Sales	$	1,400,000
Variable expenses		510,000
Contribution margin		890,000
Fixed expenses		610,000
Net operating income	$	280,000
Average operating assets	$	875,000

At the beginning of this year, the company has a $175,000 investment opportunity with the following cost and revenue characteristics:

Sales	$	280,000
Contribution margin ratio		50	% of sales
Fixed expenses	$	98,000

The companys minimum required rate of return is 15%.

1-1. What is last years margin?

1-2. What is last years turnover?

2. What is last years return on investment (ROI)?

3. What is the margin related to this years investment opportunity?