Gauntlett Incorporated reported the following results from last years operations:

Sales	$ 12,000,000
Variable expenses	9,580,000
Contribution margin	2,420,000
Fixed expenses	1,460,000
Net operating income	$ 960,000
Average operating assets	$ 5,000,000

At the beginning of this year, the company has a $1,300,000 investment opportunity with the following characteristics:

Sales	$ 4,680,000
Contribution margin ratio	50	% of sales
Fixed expenses	$ 2,059,200

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

Multiple Choice

• 12.83

• 2.65

• 1.90

• 3.34