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Bothell Inc. reported a net operating income of $6,000,000 and average operating assets of $25,000,000 for last year. At the beginning of current year, Bothell
Bothell Inc. reported a net operating income of $6,000,000 and average operating assets of $25,000,000 for last year. At the beginning of current year, Bothell has a $10,000,000 investment opportunity that involves sales of $11,000,000, fixed expenses of $3,630,000, and a contribution margin ratio of 40%. If Bothell takes on this investment opportunity and otherwise performs exactly the same as last year, what is the combined ROI for the entire company?
Multiple Choice
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2.2%
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19.3%
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17.1%
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22.6%
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