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) 4.9%
B) 4.3%
C) 0.9%
D) 3.5%

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) 4.9%B) 4.3%C) 0.9%D) 3.5%

Brittany Williams · Accepted Answer

Final Answer : B, Explanation :    Net operating income = $672,000 + $151,200 = $823,200Sales = $16,800,000 + $2,520,000 = $19,320,000Margin = Net operating income ÷ Sales = $823,200 ÷ $19,320,000 = 4.3%Reference: CH10-Ref9Parsa Inc.reported the following results from last year's operations:   At the beginning of this year, the company has a $1,100,000 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) 4.9%
B) 4.3%
C) 0.9%
D) 3.5%

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