Salvey Inc

Multiple Choice

Salvey Inc.reported the following results from last year's operations:
The company's average operating assets were $3,000,000.

At the beginning of this year, the company has a $300,000 investment opportunity that involves sales of $480,000, fixed expenses of $100,800, 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 ROI for the entire company will be closest to:

A) 16.6%
B) 1.3%
C) 18.2%
D) 15.3%