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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 $ 2,000,000 640,000 1360,000 860,000 $ 500,000 Average operating assets $ 1,250,000 This year, the company has a $250,000 investment opportunity with the following cost and revenue characteristics: 400,000 Sales Contribution margin ratio Fixed expenses 70% of sales $220,000 The company's minimum required rate of return is 10%
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