Youns Inc. reported the following results from last year\'s operations: Sales Va

Question

Youns Inc. reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income $10,5ee,e00 6,610,000 3,890,806e 3,260,000 630,000 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 company will be closest to: Multiple Choice Prex 1 of 10 Next TOSHIBA

Explanation / Answer

Turnover = Sales/Average operating assets = (10500000+2800000)/(5000000+1400000)= 2.08 Option 4 is correct

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