Cirone Inc.reported the following results from last year's operations: At the beginning of this year, the company has a $1,200,000 investment opportunity with the following characteristics: 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) 3.1%
B) 8.4%
C) 6.3%
D) 12.1%

Question

Cirone Inc.reported the following results from last year's operations:

At the beginning of this year, the company has a $1,200,000 investment opportunity with the following characteristics: Cirone Inc.reported the following results from last year's operations: At the beginning of this year, the company has a $1,200,000 investment opportunity with the following characteristics: 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) 3.1% B) 8.4% C) 6.3% D) 12.1%

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) 3.1%
B) 8.4%
C) 6.3%
D) 12.1%

arlene calcena · Accepted Answer

Final Answer : B, Explanation :    Net operating income = $864,000 + $294,000 = $1,158,000Sales = $9,600,000 + $4,200,000 = $13,800,000Margin = Net operating income ÷ Sales = $1,158,000 ÷ $13,800,000 = 8.4%

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