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Shrewsbury Inc. reported the following results from last year's operations: Sales $ 7,200,000 Variable expenses 5,400,000 Contribution margin 1,800,000 Fixed expenses 1.296,000 Net operating income

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Shrewsbury Inc. reported the following results from last year's operations: Sales $ 7,200,000 Variable expenses 5,400,000 Contribution margin 1,800,000 Fixed expenses 1.296,000 Net operating income $ 504.000 Average operating assets 4,000,000 At the beginning of this year, the company has a $800,000 investment opportunity with the following characteristics: 2,480,000 40% of sales Sales Contribution margin ratio Fixed expenses The company's minimum required rate of return is 14%. 868,000 If the company pursues the investment opportunity, this year's combined residual income for the entire company will be closest to

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