Gauntlett Inc. reported the following results from last year's operations:   Sales$12,000,000Variable expenses 9,580,000Contribution margin 2,420,000Fixed expenses 1,460,000Net operating income$960,000Average operating assets$5,000,000?At the beginning of this year, the company has a $1,300,000 investment opportunity with the following characteristics: Sales$4,680,000 Contribution margin ratio  50% of salesFixed expenses$2,059,200 ?Last year's turnover was closest to:

A. 12.50
B. 0.42
C. 2.40
D. 0.08


Answer: C

Business

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