Missing part of question
Westerville Company reported the following results from last year's operations
Sales $1,400,000
Variable expenses 680,000
Contribution margin 720,000
Fixed expenses 440,000
Net operating income $280,000
Average operating assets $875,000
This year, the company has a $300,000 investment opportunity with the following cost and revenue characteristics:
Answer:
Margin = 20.00%
Explanation:
Margin refers to the difference between the seller's cost for acquiring products and the selling price
Margin Is calculated by Net Operating Income ÷ Sales
Given that Net Operating Income = $280,000 and
Sales = $1,400,00 (Fromm the question)
Calculating Net Operating Income
By substituton
= $280,000/$1,400,000 ---- divid
Net Operating Income = 0.2 ---- convert to percentage
Net Operating Income = 20%
Hence the net operating income is 20%
