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Westerville Company reported the following results from last year's operations: Sales $2,000,000 Variable expenses 640,000 Contribution margin 1,360,000 Fixed expenses Net operating income Average operating
Westerville Company reported the following results from last year's operations: Sales $2,000,000 Variable expenses 640,000 Contribution margin 1,360,000 Fixed expenses Net operating income Average operating assets 860,000 500,000 $1,250,000 This year, the company has a $250,000 investment opportunity with the following cost and revenue characteristics Sales Contribution margin ratio Fixed expenses $400,000 70 % of sales $220,000 The company's minimum required rate of return is 10%
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