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22. Pankey Inc. has a $700,000 investment opportunity that would involve sales of $1,050,000, a contribution margin ratio of 40% of sales, and fixed expenses

22. Pankey Inc. has a $700,000 investment opportunity that would involve sales of $1,050,000, a contribution margin ratio of 40% of sales, and fixed expenses of $325,500. The companys minimum required rate of return is 18%. The residual income for this year's investment opportunity is closest to:

Multiple Choice

$126,000

$0

($31,500)

$94,500

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