Safety Seats Company recorded operating data for its seats division for the year. The companys desired return is 5%.

Sales	P500,000
Contribution margin	100,000
Total direct fixed costs	60,000
Average total operating assets	200,000

How much is ROI for the year if management is able to identify a way to improve the contribution margin by P20,000, assuming fixed costs are held constant?

Material 8,700 feet used; 9,000 feet purchased @ P4.50 per foot

Labor 7,000 direct labor hours @ P7.90 per hour

What is the material quantity variance? SHOW SOLUTION