Cirone Incorporated reported the following results from last year's operations: $ 9,600,000 6,810,000 2,790,000 1,926,000 $ 864,000 $4,000,000 Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets At the beginning of this year, the company has a $1,200,000 investment opportunity with the following characteristics: Sales Contribution margin ratio Fixed expenses $ 966,000 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: Multiple Choice O O O O 3.1% 12.1% 8.4% $4,200,000 6.3% 30% of sales
Cirone Incorporated reported the following results from last year's operations: $ 9,600,000 6,810,000 2,790,000 1,926,000 $ 864,000 $4,000,000 Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets At the beginning of this year, the company has a $1,200,000 investment opportunity with the following characteristics: Sales Contribution margin ratio Fixed expenses $ 966,000 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: Multiple Choice O O O O 3.1% 12.1% 8.4% $4,200,000 6.3% 30% of sales
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cirone Incorporated reported the following results from last year's operations:
$ 9,600,000
6,810,000
2,790,000
1,926,000
Fixed expenses
Net operating income
$ 864,000
Average operating assets
$ 4,000,000
At the beginning of this year, the company has a $1,200,000 investment opportunity with the following characteristics:
$ 4,200,000
Sales
Variable expenses
Contribution margin
Sales
Contribution margin ratio
Fixed expenses
$ 966,000
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:
Multiple Choice
O
O
3.1%
12.1%
8.4%
6.3%
30% of sales
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