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Required information The Foundational 15(Algo)[L010-1, L010-2] [The following information applies to the...

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Accounting

Required information
The Foundational 15(Algo)[L010-1, L010-2]
[The following information applies to the questions displayed below.]
Westerville Company reported the following results from last year's operations:
At the beginning of this year, the company has a $150,000 investment opportunity with the following cost and revenue
characteristics:
Sales
$240,000
Contribution margin ratio 50% of sales
Fixed expenses
$84,000
The company's minimum required rate of return is 15%.
Foundational 10-13(Algo)
If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn
this year?
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