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What is the margin related to year investment opportunity

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Westerville Company reported the following results from last year% operations:

Sales

S         1,500,000

Variable expenses

730,000

Contribution margin

770,000

Fixed expenses

470,900

Net operating income

S               300,000

Average operating assets

S               937,500

At the beginning of this year the company has a $362,500 investment opportunity with the following cost and revenue characteristics:

Sales $ 580,000
Contribution margin ratio 70 % of sales
Fixed expenses $ 319,000
The company's minimum required rate of return is 10%.

problem 1: What is the margin related to this year's investment opportunity?

Reference no: EM132784612

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