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Westerville Company reported the following results from last year's operations Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 1,500,000 500,000 1,000,000 700,000
Westerville Company reported the following results from last year's operations Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 1,500,000 500,000 1,000,000 700,000 $ 300,000 Average operating assets 1,000,000 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 $ 300,000 60 of sales s 132,000 The company's minimum required rate of return is 10%
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