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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 $ 1,800,000 740,000 1,060,000 700,000 $ 360,000 Average operating assets $ 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 $ 280,000 The company's minimum required rate of return is 10%. 4. What is the margin related to this year's Investment opportunity? Answer is complete but not entirely correct. Margin 90 96

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