Westerville Company reported the following results from last years operations:

$2,200,000 660,000 Sales Variable expenses 1,540,000 1,100,000 Contribution margin Fixed expenses Net operating income Average operating assets $ 440,000 $1,375,000 This year, the company has a $275,000 investment opportunity with the following cost and revenue characteristics Sales Contribution margin ratio Fixed expenses $440,000 60 % of sales $220,000 The company's minimum required rate of return is 15%