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Shrewsbury Inc. reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $7,200,000 5,400,000

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Shrewsbury Inc. reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $7,200,000 5,400,000 1,800,000 1,296,000 $ 504,000 $4,000,000 At the beginning of this year, the company has a $800,000 investment opportunity with the following characteristics: Sales Contribution margin ratio Fixed expenses $2,480,000 40% of sales $ 868,000 The company's minimum required rate of return is 14%. If the company pursues the investment opportunity, this year's combined residual income for the entire company will be closest to: The company's minimum required rate of return is 14%. of the company pursues the investment opportunity, this year's combined residual income for the entire company will be closest to: Multiple Choice $23,200 (544,000) $628,000 $652,800

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