Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $123,000, 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.
\table[[Sales,$1,000,000
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Process Modeling Simulation And Design

Authors: Manuel Laguna, Johan Marklund

3rd Edition

1138061735, 978-1138061736

More Books

Students also viewed these Accounting questions

Question

Describe the four opportunities for improving ecoefciency.

Answered: 1 week ago

Question

Discuss the rationale of Equation 10.2.

Answered: 1 week ago

Question

Help please need it by tomorrow for Bus 4 9 8

Answered: 1 week ago