Cirone Incorporated reported the following results from last years operations:

Sales	$ 9,600,000
Variable expenses	6,810,000
Contribution margin	2,790,000
Fixed expenses	1,926,000
Net operating income	$ 864,000
Average operating assets	$ 4,000,000

At the beginning of this year, the company has a $1,200,000 investment opportunity with the following characteristics:

Sales	$ 4,200,000
Contribution margin ratio	30	% of sales
Fixed expenses	$ 966,000

If the company pursues the investment opportunity and otherwise performs the same as last year, the combined margin for the entire company will be closest to:

Multiple Choice

12.1%

3.1%

6.3%

8.4%