Saved Help Save & Exit Subr Required Information The Foundational 15 (LO10-1, LO10-2] The following information applies to the questions displayed below) 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,eee, eee 300,000 7ee, eee see, eee $ 200, eee $ 625, eee At the beginning of this year, the company has a $120,000 Investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 200, eee 60 % of sales $ 90,000 The company's minimum required rate of return is 15%. Foundational 10-15 15-a. Assume that the contribution margin ratio of the investment opportunity was 50% Instead of 60%. 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 NO 15-b. Would the owners of the company want her to pursue the investment opportunity? Yes NO