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Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $
Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,300,000 440,000 860,000 600,000 $ 260,000 $ 812,500 At the beginning of 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 $ 182,000 Fixed expenses The company's minimum required rate of return is 15%. 9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? Note: Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%.) ROI %
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