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Alex
3 years ago
10

Bramble Corp. recorded operating data for its auto accessories division for the year. Sales $790000 Contribution margin 260000 T

otal direct fixed costs 90000 Average total operating assets 250000 How much is ROI for the year if management is able to identify a way to improve the contribution margin by $30000, assuming fixed costs are held constant?
Business
1 answer:
Andrei [34K]3 years ago
3 0

Answer:

80%

Explanation:

For computing the return on investment first we have to need the following calculations

New contribution margin = Old contribution margin + increase  in contribution margin

= $260,000 + $30,000

= $290,000

And,

Net Income = Contribution margin - Total direct fixed costs

= $290,000 - $90,000

= $200,000

ROI = Net income ÷  average operating assets

= $200,000 ÷ $250,000

= 80%

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Explanation:

The correct phrase should be:

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Answer:

Hey mate.....

Explanation:

This is ur answer.....

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Hope it helps!

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