Gauntlett Inc At the Beginning of This Year, the Company Has a \begin{array}{lr}
\text

question 37

Multiple Choice

Gauntlett Inc. reported the following results from last year's operations: $\begin{array}{lr}\text { Sales } & \$ 12,000,000 \\\text { Variable expenses } & 9,580,000 \\\text { Contribution margin } & 2,420,000\\\text { Fixed expenses }& 1,460,000 \\\text { Net operating income }&\$960,000 \\\text { Average operating assets }&\$5,000,000\end{array}$ At the beginning of this year, the company has a $1,300,000 investment opportunity with the following characteristics:
$\begin{array}{lc}\text { Sales } & \$ 4,680,000 \\\text { Contribution margin ratio } & 50 \% \text { of sales } \\\text { Fixed expenses } & \$ 2,059,200\end{array}$ Last year's turnover was closest to:

• A) 0.08
• B) 0.42
• C) 12.50
• D) 2.40

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Definitions:

Technological Advance

Improvements and innovations in technology that increase productivity, efficiency, and economic output.

Machine-making Industry

A sector of the economy focused on the manufacturing and maintenance of machines and mechanical equipment.

Production Possibilities Frontier

A portrayal that shows the maximum achievable production levels for two goods, based on a selection of inputs involving resources and extra factors.

Production Possibilities Frontier

A diagram that represents the maximum production potential for two or more commodities, given certain inputs like resources and workforce.