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6- Robichau Inc. reported the following results from last year's operations: Sales $6,300,000 Variable expenses 4,930,000 Contribution margin 1,370,000 Fixed expenses 803,000 Net operating
6- Robichau Inc. reported the following results from last year's operations: Sales $6,300,000 Variable expenses 4,930,000 Contribution margin 1,370,000 Fixed expenses 803,000 Net operating income $567,000 Average operating assets $3,000,000 At the beginning of this year, the company has a $900,000 investment opportunity with the following characteristics: Sales Contribution margin ratio Fixed expenses $1,530,000 30% of sales 306,000 The company's minimum required rate of return is 20%. The ROI for this year's investment opportunity considered alone is closest to: A) 51.0% B) 50.0% C) 10.0% D) 17.0%
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