The following information applies to the questions displayed

The following information applies to the questions displayed below Westerville Company reported the following results from last year\'s operations: Sales Varlable expenses Contribution margin Flxed expenses Net operating Income $ 1400,000 680,000 720,000 $280,000 Average operating assets $ 875,000 This year, the company has a $300,000 investment opportunity with the following cost and revenue characteristics: $480,000 Sales Contribution margin ratio Fixed expenses 80% of sales $336,000 The company\'s minimum required rate of return is 15%.

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	Existing	Investment Opportunity	Total
Sales	$        1,400,000	$            480,000	$ 1,880,000
Less: Variable Cost	$            680,000	$               96,000	$     776,000
Contribution Margin	$            720,000	$            384,000	$ 1,104,000
Fixed expenses	$            440,000	$            336,000	$     776,000
Net Operating Income	$            280,000	$               48,000	$     328,000
Operating Assets	$            875,000	$            300,000	$ 1,175,000