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) 9.9%
B) 1.9%
C) 7.8%
D) 6.3%

Question

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) 9.9%B) 1.9%C) 7.8%D) 6.3%

Shakelia Almore · Accepted Answer

Final Answer : C, Explanation :    Net operating income = $456,000 + $107,100 = $563,100Sales = $5,700,000 + $1,530,000 = $7,230,000Margin = Net operating income ÷ Sales = $563,100 ÷ $7,230,000 = 7.8%

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) 9.9%
B) 1.9%
C) 7.8%
D) 6.3%

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