Lakeside Manufacturing made a $275,000 investment in new equipment. Assuming the company's margin is 7.2%, what income will be earned if the investment generates $450,000 in additional sales?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
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Lakeside Manufacturing made a $275,000 investment in new equipment.
Assuming the company's margin is 7.2%, what income will be earned if the
investment generates $450,000 in additional sales?
Transcribed Image Text:Lakeside Manufacturing made a $275,000 investment in new equipment. Assuming the company's margin is 7.2%, what income will be earned if the investment generates $450,000 in additional sales?
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