Minar Inc Reported the Following Results from Last Year's Operations

question 150

Multiple Choice

Minar Inc. reported the following results from last year's operations: $\begin{array}{lrr}\text { Sales } & \$ 5,700,000 \\\text { Variable expenses } & 3,510,000 \\\text { Contribution margin } & 2,190,000 \\\text { Fixed expenses } & 1,734,000 \\\text { Net operating income } & \$ 456,000 \\\text { Average operating assets } & \$ \quad 3,000,000\end{array}$ At the beginning of this year, the company has a $900,000 investment opportunity with the following characteristics:
$\begin{array}{lc}\text { Sales } & \$ 1,530,000 \\\text { Contribution margin ratio } & 60 \% \text { of sales } \\\text { Fixed expenses } & \$ 810,900\end{array}$ 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) 8.03
• B) 1.85
• C) 2.41
• D) 1.46

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