Minar Inc. reported the following results from last year's operations: Sales$5,700,000Variable expenses 3,510,000Contribution margin 2,190,000Fixed expenses 1,734,000Net operating income$456,000Average operating assets$3,000,000?At the beginning of this year, the company has a $900,000 investment opportunity with the following characteristics: Sales$1,530,000 Contribution margin ratio 60% of salesFixed expenses$810,900 ?If the company pursues the investment opportunity and otherwise performs the same as last year, the combined margin for the entire company will be closest to:
A. 9.9%
B. 6.3%
C. 1.9%
D. 7.8%
Answer: D
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