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Mountville's results for the year and the potential new investment are shown below. If the new investment is approved and expected to create sales
Mountville's results for the year and the potential new investment are shown below. If the new investment is approved and expected to create sales of $142,000, a contribution margin of 60% of sales and added fixed costs of $90,000, what is the next year's ROI expected to be (assume rest of firm operates same as last year)? Express as a percent, rounded to two decimal places. (for example 15.25% 15.25) Sales Variable expenses Fixed expenses Average operating assets Minimum rate of return New investment $1,000,000 $300,000 $500,000 $625,000 15% $9,000
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