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Westerville company reported the following results from last year's operations

05/04/2021 Client: muhammad11 Deadline: 2 Day

I need an explanation for this Accounting question to help me study.

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Westerville Company reported the following results from last year’s operations:

Sales

$

2,000,000

Variable expenses

640,000

Contribution margin

1,360,000

Fixed expenses

860,000

Net operating income

$

500,000

Average operating assets

$

1,250,000

This year, the company has a $250,000 investment opportunity with the following cost and revenue characteristics:

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