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

question 42

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 ROI for the entire company will be closest to:

• A) 14.4%
• B) 2.7%
• C) 11.7%
• D) 18.8%

Understand the impact of investor behavior on portfolio performance and trading volume.

Appreciate the limits to arbitrage in the presence of behavioral biases and market inefficiencies.

Understand and apply the VALS framework for consumer segmentation.

Identify different consumer segments within the VALS framework based on unique motivations and resources.

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Definitions:

Clayton Act

An antitrust law enacted in the United States to promote competition and prevent monopolies by prohibiting certain actions that could lead to anti-competitive practices.

Genetic Traits

Characteristics determined by genes inherited from parents, influencing an individual's physical and possibly behavioral attributes.

Alterations

Alterations refer to changes or modifications made to something, often to suit a particular purpose or improve it.

Plants

Plants are multicellular organisms in the kingdom Plantae that primarily use photosynthesis to convert light energy into chemical energy.