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Tadman Inc

Question 137

Multiple Choice

Tadman Inc.reported the following results from last year's operations:
Tadman Inc.reported the following results from last year's operations:   At the beginning of this year,the company has a $800,000 investment opportunity that involves sales of $2,800,000,fixed expenses of $756,000,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 margin for the entire company will be closest to: A)  1.0% B)  3.0% C)  5.0% D)  3.8% At the beginning of this year,the company has a $800,000 investment opportunity that involves sales of $2,800,000,fixed expenses of $756,000,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 margin for the entire company will be closest to:


A) 1.0%
B) 3.0%
C) 5.0%
D) 3.8%

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