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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 years operations: Sales

Required information Skip to question [The following information applies to the questions displayed below.] Westerville Company reported the following results from last years operations: Sales $ 1,800,000 Variable expenses 435,000 Contribution margin 1,365,000 Fixed expenses 1,005,000 Net operating income $ 360,000 Average operating assets $ 1,200,000 At the beginning of this year, the company has a $300,000 investment opportunity with the following cost and revenue characteristics: Sales $ 360,000 Contribution margin ratio 70 % of sales Fixed expenses $ 216,000 The companys minimum required rate of return is 10%. 6. What is the ROI related to this years investment opportunity? (Do not round intermediate calculations.)

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