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Westerville Company reported the following results from last year's operations:Cumberland County Senior Services is a non$-$profit organization devoted to providing essential services to seniors who live in

their own homes within the Cumberland County area. Three services are provided for seniors$-$home nursing, Meals on

Wheels, and housekeeping. In the home nursing program, nurses visit seniors on a regular basis to check on their general

health and to perform tests ordered by their physicians. The Meals on Wheels program delivers a hot meal once a day to each

senior enrolled in the program. The housekeeping service provides weekly housecleaning and maintenance services. Data on

revenue and expenses for the past year follow:

$*$Allocated on the basis of program revenues.

The head administrator of Cumberland County Senior Services, Judith Ewa, is concerned about the organization's finances

and considers the operating income of $$6,600$ last year to be razor$-$thin. $($Last year's results were very similar to the results for

previous years and are representative of what would be expected in the future.$)$ She feels that the organization should be

building its financial reserves at a more rapid rate in order to prepare for the next inevitable recession. After seeing the above

report, Ewa asked for more information about the financial advisability of discontinuing the housekeeping program.

The depreciation in the housekeeping category is for a small van that is used to carry the housekeepers and their equipment

from job to job. If the program were discontinued, the van would be donated to a charitable organization. Depreciation charges

assume zero salvage value. None of the general administrative overhead would be avoided if the housekeeping program were

dropped, but the liability insurance and the salary of the program administrator would be avoided.

This year, the company has a $$300,000$ investment opportunity with the following cost and revenue characteristics:

Sales

$$360,000$

Contribution margin ratio

$70\%$ of sales

Fixed expenses

$$216,000$

The company's min$$mum required rate of return is $10\%.$

Q$2$ refer to Westerville above:

a$.$ What is last year's margin

b$.$ What is last year's turnover

c$.$ What is last year's ROI

d$.$ What is last year's RI

e$.$ What is the ROI related to this year's investment opportunity

f$.$ What is the RI related to this year's investment opportunity

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