Salvey Inc. reported the following results from last year's operations: Sales$7,200,000Variable expenses 5,550,000Contribution margin 1,650,000Fixed expenses 1,146,000Net operating income$504,000?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. 1.3%
B. 15.3%
C. 18.2%
D. 16.6%
Answer: D
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