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Help 2) Salvey Inc. reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income 7,200,000 5,550,000 1,650,000

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2) Salvey Inc. reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income 7,200,000 5,550,000 1,650,000 1,146,000 $ 504.000 The company's average operating assets were $3,000,000. At the beginning of this year, the company has a $300,000 investment opportunity that involves sales of $480,000, fixed expenses of $100,800, and a contribution margin ratio of 30% of sales. If the company pursues the investment opportunity and otherwise performs the same as last year, the combined ROl for the entire company will be closest to: 2) A) 16.6% B) 15.3% C) 1.3% D) 18.2% 3) Serie Inc. reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income 16,800,000 10,640,000 6,160,000 5.488,000 $ 672,000 ,000,000 Average operating assets S 7 the beginning of this year, the company has a $2,100,000 investment opportunity with the following characteristics: Sales Contribution margin ratio Fixed expenses $ 2,520,000 50 1,108,800 90 of sales 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: A)4.9% B)0.9% C)3.5% D) 4.3%

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