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Wiswell Incorporated reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 15,200,000 9,270,000 5,930,000 5,018,000
Wiswell Incorporated reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 15,200,000 9,270,000 5,930,000 5,018,000 $ 912,000 The average operating assets were $8,000,000 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 Multiple Choice (519.800) O ($19,800) O $925,600 O O O $104,800 $994.800
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