Answer:
See below
Explanation:
Given the above information, first we need to get the value of contribution margin , which is computed as;
Controllable margin = Contribution margin - Total direct fixed cost
$88,000 = Contribution margin - $100,000
Contribution margin = $88,000 + $100,000
Contribution margin = $188,000
Also,
Net income = Contribution margin - Total fixed expense
Net income = $188,000 - $100,000
Net income = $88,000
Return on investment = Net income ÷ Average operating assets
Return on investment = $88,000 ÷ $4,400,000
Return on investment = 2%
Therefore, the ROI for the year is 2%
