Required information

The Foundational $15($Algo$)[$L$010-1,$ L$010-2]$

$[$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?