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$3,000,000At 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 turnover for the entire company will be closest to:

A. 8.03
B. 1.46
C. 1.85
D. 2.41


Answer: C

Business

You might also like to view...

Theory Y managers believe

a. employees are not motivated. b. employees are underutilized. c. employees need to be directed. d. employees do not seek responsibility, but accept it.

Business

Which document is included with a shipment sent to a customer?

a. sales invoice b. stock release form c. packing slip d. shipping notice

Business

An appointment with a potential customer to explain or demonstrate your product or service is called a ________.

A. sales call B. pre-qualification C. product demonstration D. presentation

Business

Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.

A. A project's regular IRR is found by compounding the cash inflows at the WACC to find the terminal value (TV), then discounting this TV at the WACC. B. A project's regular IRR is found by discounting the cash inflows at the WACC to find the present value (PV), then compounding this PV to find the IRR. C. If a project's IRR is greater than the WACC, then its NPV must be negative. D. To find a project's IRR, we must solve for the discount rate that causes the PV of the inflows to equal the PV of the project's costs. E. To find a project's IRR, we must find a discount rate that is equal to the WACC.

Business