Wiswell Inc

question 68

Multiple Choice

Wiswell Inc.reported the following results from last year's operations: The average operating assets were $8,000,000.

At the beginning of this year, the company has a $900,000 investment opportunity that would involve sales of $2,070,000, a contribution margin ratio of 30% of sales, and fixed expenses of $538,200.The company's minimum required rate of return is 10%.If the company pursues the investment opportunity, this year's combined residual income for the entire company will be closest to:

• A)$104,800
• B)$925,600
• C)($19,800)
• D)$994,800

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Definitions:

Chain Termination

A process in polymerization or DNA synthesis where growth of the polymer chain is stopped by a terminating molecule.

Ethane

A simple aliphatic hydrocarbon with the formula C2H6, consisting of two carbon atoms single-bonded together and six hydrogen atoms.

UV Light

Ultraviolet light, a type of electromagnetic radiation with a wavelength shorter than visible light but longer than X-rays.

Reaction Rates

A measure of how quickly the concentration of reactants decreases or the concentration of products increases over time in a chemical reaction.