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PT Inc. is deciding whether to invest on a $900,000 investment that has the following information: Sales $ 3,500,000 Contribution margin ratio 60 % of

  1. PT Inc. is deciding whether to invest on a $900,000 investment that has the following information:

Sales

$

3,500,000

Contribution margin ratio

60

% of sales

Fixed expenses

$

642,000

The margin for this investment opportunity is closest to:

  1. 0.40%
  2. 5.0%
  3. 0.42%
  4. 8.60%

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