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spiayet below Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income s 1,480,080 688,000
spiayet below Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income s 1,480,080 688,000 720,800 440,080 $ 280,00 Average operating assets 875,880 At the beginning of this year, the company has a $300000 investment opportunity with the following cost and revenue characteristics $ 48e,8e Sales Contribution margin ratio Fixed expenses 80% of sales The company's minimum required rate of return is 15%. 14. If Westerville's chief executive officer will earn a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the investment opportunity? O Yes e No
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