Youns Incorporated reported the following results from last year's operations: The company's average operating assets were $5,000,000.At the beginning of this year, the company has a $1,400,000 investment opportunity that involves sales of $2,800,000, fixed expenses of $616,000, 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 turnover for the entire company will be closest to:
A) 9.50
B) 1.64
C) 2.66
D) 2.08

Question

Youns Incorporated reported the following results from last year's operations:  The company's average operating assets were $5,000,000.At the beginning of this year, the company has a $1,400,000 investment opportunity that involves sales of $2,800,000, fixed expenses of $616,000, 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 turnover for the entire company will be closest to:
A) 9.50 
B) 1.64 
C) 2.66 
D) 2.08

Quizplus · Accepted Answer

The Answer of Youns Incorporated reported the following results from last year's operations:  The company's average operating assets were $5,000,000.At the beginning of this year, the company has a $1,400,000 investment opportunity that involves sales of $2,800,000, fixed expenses of $616,000, 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 turnover for the entire company will be closest to:
A) 9.50 
B) 1.64 
C) 2.66 
D) 2.08

Youns Incorporated Reported the Following Results from Last Year's Operations