Question - Vestorville Company reported the following results from last year's operations
Sales 1,000,000
Variable expenses 300,000
Contribution margin 700,000
Fixed expenses 500,000
Net operating income 200,000
Average operating assets 625,000
At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics
Sales 200,000
Contribution margin ratio 60% sales
Fixed expenses 90,000
The company's minimum required rate of return is 15%
What is last year's margin?