Youns Incorporated Reported the Following Results from Last Year's Operations

question 103

Multiple Choice

Youns Incorporated reported the following results from last year's operations: 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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Definitions:

Estrogen

A hormone (the so-called female sex hormone) that promotes the development and maintenance of female physical characteristics and that is involved in sexual activity and desire,

Testosterone

A hormone (the so-called male sex hormone) that stimulates development of male secondary sexual characteristics and that is involved in sexual activity and desire, variations in the level of which can lower or increase sex drive.

Prolactin

A hormone that helps initiate and maintain breast milk production in pregnant and nursing women, and that is involved in sexual activity and desire, variations in the level of which can lower or increase sex drive.

Oxytocin

A hormone and neurotransmitter involved in childbirth and lactation, also associated with empathy, trust, sexual activity, and relationship-building.