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Wiswell Inc. reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 15,200,000 The average operating
Wiswell Inc. reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 15,200,000 The average operating assets were $8,000,000. 9.270.000 5,930,000 5,018,000 $ 912.000 At the beginning of this year, the company has a $900,000 investment opportunity that would involve sales of $2,070.000, a contribution margin ratio of 30% of sales. and fixed expenses of $538,200. The company's minimum required rate of return is 10%. If the company pursues the investment opportunity, this year's combined residual income for the entire company will be closest to:
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