Parsa Inc. reported the following results from last year's operations: Sales$14,000,000Variable expenses 9,500,000Contribution margin 4,500,000Fixed expenses 3,800,000Net operating income$ 700,000Average operating assets$7,000,000At the beginning of this year, the company has a $1,100,000 investment opportunity with the following characteristics: Sales$1,980,000 Contribution margin ratio 40% of salesFixed expenses$653,400 The ROI for this year's investment opportunity considered alone is closest to:
A. 21.2%
B. 7.0%
C. 12.6%
D. 72.0%
Answer: C
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