Serie Inc. reported the following results from last year's operations: Sales$16,800,000Variable expenses 10,640,000Contribution margin 6,160,000Fixed expenses 5,488,000Net operating income$672,000Average operating assets$7,000,000?At the beginning of this year, the company has a $2,100,000 investment opportunity with the following characteristics: Sales$2,520,000 Contribution margin ratio 50% of salesFixed expenses$1,108,800 ?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. 3.5%
B. 0.9%
C. 4.9%
D. 4.3%
Answer: D
Business
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