Gauntlett Inc At the Beginning of This Year, the Company Has a \begin{array}{lr}
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question 29

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:
$\begin{array}{lc}\text { Sales } & \$ 4,680,000 \\\text { Contribution margin ratio } & 50 \% \text { of sales } \\\text { Fixed expenses } & \$ 2,059,200\end{array}$ 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) 12.83
• B) 2.65
• C) 1.90
• D) 3.34

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Definitions:

Situation

The set of circumstances or context in which an event occurs, influencing the outcome or the actions of those involved.

Trait Approach

A way of studying personality that focuses on identifying and measuring individual differences in behavioral predispositions.

Continuum

A continuous sequence or range in which adjacent elements do not vary markedly from each other, but the extremes are quite distinct.

Personality Characteristics

Traits or qualities that form an individual's distinctive character and behavior patterns.