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Foundational [LO11-1, LO11-2] [The following information applies to the questions displayed below. Westerville Company reported the following results from last year's operations: Sales $2,300,000 Variable
Foundational [LO11-1, LO11-2] [The following information applies to the questions displayed below. Westerville Company reported the following results from last year's operations: Sales $2,300,000 Variable expenses 670,000 Contribution margin 1,630,000 Fixed expenses Net operating income Average operating assets 1,170,000 $460,000 $1,437,500 This year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics: $460,000 Sales Contribution margin ratio Fixed expenses 50 % of sales $161,000 The company's minimum required rate of return is 15%
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