Question
Bornita Industries recorded operating data for its shoe division for the year as follows: Sales: $820,000 Contribution Margin: $129,000 Total Fixed Costs: $90,600 Average Total
Bornita Industries recorded operating data for its shoe division for the year as follows:
Sales: $820,000
Contribution Margin: $129,000
Total Fixed Costs: $90,600
Average Total Operating Assets: $360,000
What is the ROI for the year if management is able to identify a way to improve the contribution margin by $30,000, assuming fixed costs are held constant?
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Step: 1
To calculate the ROI Return on Investment we need to calculate the profit before taxes which is the ...
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Managerial Accounting Creating Value in a Dynamic Business Environment
Authors: Ronald W. Hilton
11th edition
125956956X, 978-1259569562
