1. Youns Inc. reported the following results from last year's 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 company's 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:

A) 9.50

B) 1.64

C) 2.66

D) 2.08

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