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[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

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[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 $1,400,000 510,000 890,000 610,000 $ 280,000 Average operating assets $ 875,000 At the beginning of this year, the company has a $175,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $280,000 50% of sales $ 98,000 The company's minimum required rate of return is 15%. 4. What is the margin related to this year's investment opportunity? Margin %

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