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Youns Inc. reported the following results from last years operations: Sales $ 10,500,000 Variable expenses 6,610,000 Contribution margin 3,890,000 Fixed expenses 3,260,000 Net operating income

Youns Inc. reported the following results from last years operations:

Sales $ 10,500,000
Variable expenses 6,610,000
Contribution margin 3,890,000
Fixed expenses 3,260,000
Net operating income $ 630,000

The companys average operating assets were $5,000,000.

At the beginning of this year, the company has a $1,400,000 investment opportunity that involves sales of $2,800,000, fixed expenses of $616,000, 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 turnover for the entire company will be closest to:

Multiple Choice

2.08

9.50

1.64

2.66

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