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The Foundational $15($Algo$)[$LO$11-1,$ LO$11-2]$

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Westerville Company reported the following results from last year$$s operations:

Sales $ $2,000,000$

Variable expenses $640,000$

Contribution margin $1,360,000$

Fixed expenses $860,000$

Net operating income $ $500,000$

Average operating assets $ $1,250,000$

At the beginning of this year, the company has a $$250,000$ investment opportunity with the following cost and revenue characteristics:

Sales $ $400,000$

Contribution margin ratio $70\%$ of sales

Fixed expenses $ $220,000$

The company$$s minimum required rate of return is $10\%.$

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$7.$ If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year?

Note: Round your percentage answer to $1$ decimal place.