Question
Using the following data, estimate the new Return on Investment if there is a 10% increase in sales - with average operating assets as the
Using the following data, estimate the new Return on Investment if there is a 10% increase in sales - with average operating assets as the base.
| Sales | $2,000,000 |
| Variable costs | 1,100,000 |
| Contribution margin 45% | 900,000 |
| Controllable fixed costs | 300,000 |
| Controllable margin | $600,000 |
| Average operating assets | $5,000,000 |
Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.
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Fundamentals Of Entrepreneurial Finance
Authors: Marco Da Rin, Thomas Hellmann
8th Edition
0199744750, 9780199744756
