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Banner Company had the following operating data for the current year: sales, $500,000; contribution margin, $100,000; total fixed costs (controllable), $60,000; and average total operating
Banner Company had the following operating data for the current year: sales, $500,000; contribution margin, $100,000; total fixed costs (controllable), $60,000; and average total operating assets, $200,000. If management is able to improve its contribution margin by $20,000 and hold its fixed costs constant, what would Banner's Rol be for the year? 20%. 50%. 12%. 30%
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