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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
(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 Average operating assets $ 1,750,000 520,000 1,230,000 880,000 $ 350,000 $ 875,000 At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 320,000 60% of sales $ 128,000 The company's minimum required rate of return is 20% 7. If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year? (Round your percentage answer to 1 decimal place (l.e., 0.1234 should be entered as 12.3).) 3 Answer is complete but not entirely correct. Morgin 18.2
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