Salvey Inc

question 133

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:

Sensory Memory

The shortest-term element of memory, which is the ability to retain impressions of sensory information after the original stimuli have ended.

Physical Basis

The underlying physical or material foundation for an object, phenomenon, or process.

Flashbulb Memories

Highly detailed, exceptionally vivid 'snapshot' memories of the moment and circumstances in which surprising and consequential (or emotionally arousing) news was heard.

Rehearsed

Practiced or gone over in preparation, typically to improve performance or memorization.