Serie Inc. reported the following results from last year's operations:
At the beginning of this year, the company has a $2,100,000 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%

Question

Serie Inc. reported the following results from last year's operations:
  At the beginning of this year, the company has a $2,100,000 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%

Quizplus · Accepted Answer

11ea7761_166c_9828_81a5_b55b2dda8d4a_TB2580_00 Net operating income = $672,000 + $151,200 = $823,200
Sales = $16,800,000 + $2,520,000 = $19,320,000
Margin = Net operating income ÷ Sales = $823,200 ÷ $19,320,000 = 4.3%

Serie Inc Reported the Following Results from Last Year's Operations