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Parsa Inc. reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $14,000,000 9,500,000
Parsa Inc. reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $14,000,000 9,500,000 4,500,000 3,800,000 $700,000 $ 7,000,000 At the beginning of this year, the company has a $1,100,000 investment opportunity with the following characteristics Sales Contribution margin ratio Fixed expenses $1,980,000 40% of sales $ 653,400 The ROI for this year's investment opportunity considered alone is closest to Multiple Choice 70% 21.2% 12.6% 720%
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