Tadman Inc

Multiple Choice

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%