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Required Information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution
Required Information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,800,000 740,000 1,060,000 700,000 $ 360,000 $ 1,200,000 At the beginning of this year, the company has a $400,000 Investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 600,000 60% of sales $ 288,000 The company's minimum required rate of return is 10% 7. If the company pursues the Investment opportunity and otherwise performs the same as last year, what margin will it earn this year? (Round your percentage answer to 1 decimal place (1.e., 0.1234 should be entered as 12.3).) Margin
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