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

Question 75

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Youns Inc. reported the following results from last year's operations:  Sales $10,500,000 Variable expenses 6,610,000 Contribution margin 3,890,000 Fixed expenses 3,260,000 Net operating income $630,000\begin{array}{lr}\text { Sales } & \$ 10,500,000 \\\text { Variable expenses } & 6,610,000 \\\text { Contribution margin } & 3,890,000 \\\text { Fixed expenses } & 3,260,000 \\\text { Net operating income } & \$ \quad 630,000 \\\end{array} 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

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