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Vaughn Manufacturing recorded operating data for its auto accessories division for the year. Sales $760000 Contribution margin 340000 Total direct fixed costs 90000 Average total
Vaughn Manufacturing recorded operating data for its auto accessories division for the year.
| Sales | $760000 |
| Contribution margin | 340000 |
| Total direct fixed costs | 90000 |
| Average total operating assets | 500000 |
How much is ROI for the year if management is able to identify a way to improve the contribution margin by $50000, assuming fixed costs are held constant?
|
| 60.0% |
|
| 78.0% |
|
| 50.0% |
|
| 11.8% |
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