Salvey Inc

question 108

Multiple Choice

Salvey Inc.reported the following results from last year's operations:
The company's average operating assets were $3,000,000.
At the beginning of this year,the company has a $300,000 investment opportunity that involves sales of $480,000,fixed expenses of $100,800,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 ROI for the entire company will be closest to:

• A) 16.6%
• B) 1.3%
• C) 18.2%
• D) 15.3%

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Definitions:

Manipulated

Altered or controlled in a skillful or sometimes deceitful manner.

George Orwell

An English novelist, essayist, journalist, and critic, best known for his dystopian novel "1984" and the allegorical novella "Animal Farm."

Free Thought

The philosophy that opinions should be formed on the basis of logic, reason, and empiricism, rather than authority, tradition, or dogma.

Rhetorical Device

A technique used in writing or speaking to persuade, influence, or please an audience.