Question
minar inc reported the following results from last years operations sales 5,700,000 variable expenses 3,510,000 contribution margin 2,190,000 fixed expenses 1,734,000 net operating income 456,000
minar inc reported the following results from last years operations
sales 5,700,000
variable expenses 3,510,000
contribution margin 2,190,000
fixed expenses 1,734,000
net operating income 456,000
average operating assets 3,000,000
at the beginning of this year the company has a 900,000 investment opportunity with the following characteristics
sales 1,530,000
contribution margin ration 60% of sales
fixed expenses 810,900
if the company purses the investment opportunity and other wise performs the same as last year the combines margin for the entire company will be closest to
6.3%
1.9%
7.8%
9.9%
I have no clue how to figure this out
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