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lyudmila [28]
3 years ago
13

Westerville Company reported the following results from last year’s operations: Sales $ 1,000,000 Variable expenses 300,000 Cont

ribution margin 700,000 Fixed expenses 500,000 Net operating income $ 200,000 Average operating assets $ 625,000 At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: Sales $ 200,000 Contribution margin ratio 60 % of sales Fixed expenses $ 90,000 The company’s minimum required rate of return is 15%. Foundational 10-1 Required: 1. What is last year’s margin?

Business
1 answer:
yanalaym [24]3 years ago
8 0

Answer:

20%

Explanation:

Please see attachment

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