Westerville Company reported the following results from last year’s operations:
Sales
$
1,500,000
Variable expenses
730,000
Contribution margin
770,000
Fixed expenses
470,000
Net operating income
$
300,000
Average operating assets
$
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...