Canedo Inc. reported the following results from last year's operations: Sales$9,600,000Variable expenses 7,170,000Contribution margin 2,430,000Fixed expenses 1,470,000Net operating income$960,000Average operating assets$4,000,000?At the beginning of this year, the company has a $700,000 investment opportunity with the following characteristics: Sales$2,310,000 Contribution margin ratio 60% of salesFixed expenses$1,201,200 ?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. 2.04
B. 2.53
C. 17.01
D. 2.98
Answer: B
Business
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