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Westerville Company reported the following results from last year's operations: Sales Variable expenses $1,500,000 650,000 Contribution margin Fixed expenses 850,000 580,000 Net operating income $

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Westerville Company reported the following results from last year's operations: Sales Variable expenses $1,500,000 650,000 Contribution margin Fixed expenses 850,000 580,000 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 Contribution margin ratio Fixed expenses $240,000 % of 70 sales $ 144,000 The company's minimum required rate of return is 10%. 5. What is the turnover related to this year's investment opportunity? (Round your answer to 1 decimal place.) Required information value 1.00 points 6. What is the ROI related to this year's investment opportunity? RO Required information 1.00 points 11. What is last year's residual income? Required information value 1.00 points 12.What is the residual income of this year's investment opportunity? 14.If Westerville's chief executive officer will earn a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the investment opportunity? No Yes

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