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Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,500,000 730,000 770,000 470,000 $ 300,000 $ 937,500 At the beginning
Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,500,000 730,000 770,000 470,000 $ 300,000 $ 937,500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $580,000 70% of sales $ 319,000 The company's minimum required rate of return is 10%. 6. What is the ROI related to this year's investment opportunity? ROI
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