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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

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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 margin Fixed expenses Net operating income Average operating assets $ 1,200,000 320,000 880,000 640,000 $ 240,000 $ 680,000 At the beginning of this year, the company has a $150,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 240,000 50 of sales $ 84,000 The company's minimum required rate of return is 15% 13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year

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