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Prater Company Made a $100,000 Investment in New Machinery

Question 54

Multiple Choice

Prater Company made a $100,000 investment in new machinery. Assuming the company's margin is 4%, what income will be earned if the investment generates $300,000 in additional sales?


A) $40,000.
B) $12,000.
C) $200,000.
D) None of these.

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