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Wolley Inc. reported the following results from last year's operations: Sales $7,200,000 Variable expenses 5,210,000 Contribution margin 1,990,000 Fixed expenses 1,486,000 Net operating income $504,000

Wolley Inc. reported the following results from last year's operations:

Sales $7,200,000
Variable expenses 5,210,000
Contribution margin 1,990,000
Fixed expenses 1,486,000
Net operating income $504,000
Average operating assets $4,000,000

At the beginning of this year, the company has a $1,200,000 investment opportunity with the following characteristics:

Sales $1,560,000
Contribution margin ratio 30% of sales
Fixed expenses $343,200

The company's minimum required rate of return is 14%.

8. If the company pursues the investment opportunity and otherwise performs the same as last year, what will be the overall turnover this year? (Round to the nearest 0.01.)

9. If the company pursues the investment opportunity and otherwise performs the same as last year, what will be the overall ROI will this year? (Round to the nearest 0.1%.)

10. If Westerville's chief executive officer earns a bonus only if the ROI for this year exceeds the ROI for last year, would the CEO pursue the investment opportunity? Would the owners of the company want the CEO to pursue the investment opportunity?

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