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Tadman Inc. reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income $8,400,000 5, 120, 000 3,280,000
Tadman Inc. reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income $8,400,000 5, 120, 000 3,280,000 2,944,000 $ 336,000 At the beginning of this year, the company has a $800,000 investment opportunity that involves sales of $2,800,000 fixed expenses of $756,000, 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 margin for the entire company will be closest to: Multiple Choice 03.0% 50% 1.0% 038%
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