Westerville Company reported the following results from last years operations:

Sales $ 1,500,000

Variable expenses 530,000

Contribution margin 970,000

Fixed expenses 670,000

Net operating income $ 300,000

Average operating assets $ 937,500

This year, the company has a $212,500 investment opportunity with the following cost and revenue characteristics:

Sales $ 340,000

Contribution margin ratio 70 % of sales

Fixed expenses $ 187,000

The companys minimum required rate of return is 10%.

Required:

1. What is last years margin?