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:

Crowdfunding Model

A method of raising capital through the collective effort of friends, family, customers, and individual investors.

Video Pitch

A brief presentation, delivered via video, that outlines an idea or business proposal to potential investors or partners.

Formal Proposal

A detailed and structured plan or suggestion, typically presented in writing, aiming to convince others of a particular course of action.

Crowdfunding

Raising small amounts of money from a large number of people, typically via the Internet, to finance a new business venture.