Business, 13.08.2021 04:40 robert7248
Wiswell Inc. reported the following results from last year's operations:
Sales$15,200,000Variable expenses 9,270,000Contribution margin 5,930,000Fixed expenses 5,018,000Net operating income$912,000
The average operating assets were $8,000,000.
At the beginning of this year, the company has a $900,000 investment opportunity that would involve sales of $2,070,000, a contribution margin ratio of 30% of sales, and fixed expenses of $538,200. The company's minimum required rate of return is 10%. If the company pursues the investment opportunity, this year's combined residual income for the entire company will be closest to:.
A. $925,600
B. $104,800
C. ($19,800)
D. $994,800
Answers: 2
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Wiswell Inc. reported the following results from last year's operations:
Sales$15,200,000Variable...
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