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Westerville company reported the following results from

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Westerville Company reported the following results from last year's operations:
  Sales $ 1,600,000    
  Variable expenses
700,000    



  Contribution margin
900,000    
  Fixed expenses
660,000    



  Net operating income $ 240,000    



  Average operating assets $ 1,000,000    




This year the company has a $325,000 investment opportunity with the following cost and revenue characteristics:


  Sales $ 520,000
  Contribution margin ratio
70 % of sales
  Fixed expenses $ 312,000


The company's minimum required rate of return is 15%.

Required:

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

Reference no: EM13572692

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