Question: Be sure to show your steps and explain why! Or I will rate it as incomplete. Westerville Company reported the following results from last year's

 Be sure to show your steps and explain why! Or Iwill rate it as incomplete. Westerville Company reported the following results from

last year's operations Sales Variable expenses Contribution margin Fixed expenses Net operating

Be sure to show your steps and explain why! Or I will rate it as incomplete.

Westerville Company reported the following results from last year's operations Sales Variable expenses Contribution margin Fixed expenses Net operating income $1,500,000 690,000 810,000 435,000 $375,000 Average operating assets $ 1,250,000 At the beginning of this year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics Sales Contribution margin ratio Fixed expenses $420,000 70% of sales 252,000 The company's minimum required rate of return is 10%. 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? Yes O N 15-a. Assume that the contribution margin ratio of the investment opportunity was 65% instead of 70%. 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? Chief Executive fficerwi O Yes O No 15-b. Would the owners of the company want her to pursue the investment opportunity? Yes O No

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