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Pharoah Company had the following operating data for the current year: sales, $490000; contribution margin, $120000; total fixed costs (controllable), $55000; and average total operating
Pharoah Company had the following operating data for the current year: sales, $490000; contribution margin, $120000; total fixed costs (controllable), $55000; and average total operating assets, $212500. If management is able to improve its contribution margin by $20000 and hold its fixed costs constant, what would Pharoah's ROI be for the year? 40%. 17%. 31%. 56%
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