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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
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 $1,400,000 720,000 680,000 470,000 $ 210,000 875,000 Average operating assets At the beginning of this year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics: Sales $560,000 Contribution margin ratio Fixed expenses 70 of sales $336,000 The company's minimum required rate of return is 15%. 4. What is the margin related to this year's investment opportunity? Margin
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