Question
1. What is the margin related to this years investment opportunity? 2. If the company pursues the investment opportunity and otherwise performs the same as
1. What is the margin related to this years investment opportunity?
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Information following the questions to the questions displayed below/ applies Westerville Company reported the following results from last year s operations $1,800,000 Sales 740,000 Variable expenses Contribution margin 1,060,000 Fixed expenses 700,000 360.000 Net operating Income $1,200,000 Average operating assets This year, the company has a $400,000 Investment opportunity with the following cost and revenue characteristics Sales $600,000 Contribution margin ratlo 60% of sales $288,000 Fixed expenses The company's mlnlmum required rate of return ls 10%
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