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[The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: $1,500,000 Sales Variable expenses 500,000 Contribution
[The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: $1,500,000 Sales Variable expenses 500,000 Contribution margin 1,000,000 Fixed expenses 700,000 300,000 Net operating income $1,000,000 Average operating assets This year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics: $300,000 Sales 60% of sales Contribution margin ratio 132,000 Fixed expenses The company's minimum required rate of return is 10%
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