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 At the beginning of this year the company has a $325,000 investment opportunity with following cost & revenue characteristics:   sales $520,000  contribution margin ratio  70% of sales   fixe expenses   $312,000 the company's minimum required rate of return is 15% what is the margin related to this year's investment opportunity?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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

At the beginning of this year the company has a $325,000 investment opportunity with following cost & revenue characteristics:   sales $520,000  contribution margin ratio  70% of sales   fixe expenses   $312,000

the company's minimum required rate of return is 15%

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

 

 

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An investment property is a piece of real estate purchased with the intention of generating a profit through rental income, resale value, or both.  An investor, an investment firm, or a corporation may own the property. A rental property can be an investment for the long or short term. With the latter, investors frequently engage in flipping, which entails purchasing real estate, remodeling or renovating it, and then quickly selling it for a profit. Other properties purchased by an investor in the hope of future appreciation, such as art, shares, land, or other collectibles, are also considered investment properties.

 

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