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Acex inc budgeted the following results for this upcoming year based on last year's operations: $ Sales Variable expenses Contribution margin Fixed expenses Net operating

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Acex inc budgeted the following results for this upcoming year based on last year's operations: $ Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets 11,400,000 8,180,000 3,220,000 2,422,000 798,000 6,000,000 $ $ At the beginning of this year, the company has another extra $900,000 investment opportunity with the following characteristics: Sales Contribution margin ratio Fixed expenses $ 2,880,000 30% of sales $ 720,000 The company's minimum required rate of return is 12%. If the company pursues the investment opportunity, this year's combined residual income for the entire company will be closest to: $24,300 $114,000 $848,700 None of the these answers. $942,000

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