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Required information Skip to question [ The following information applies to the questions displayed below. ] Westerville Company reported the following results from last year

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[The following information applies to the questions displayed below.]
Westerville Company reported the following results from last years operations:
Sales $ 1,000,000
Variable expenses 300,000
Contribution margin 700,000
Fixed expenses 500,000
Net operating income $ 200,000
Average operating assets $ 625,000
At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics:
Sales $ 200,000
Contribution margin ratio 60% of sales
Fixed expenses $ 90,000
The companys minimum required rate of return is 15%.
4. What is the margin related to this years investment opportunity?

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