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Young Inc. reported a net operating income of $6,000,000 and average operating assets of $25,000,000 for last year. At the beginning of current year, Young

Young Inc. reported a net operating income of $6,000,000 and average operating assets of $25,000,000 for last year. At the beginning of current year, Young has a $10,000,000 investment opportunity that involves sales of $11,000,000, fixed expenses of $3,630,000, and a contribution margin ratio of 40%. If Young takes on this investment opportunity and otherwise performs exactly the same as last year, what is the combined ROI for the entire company?

  • 17.1%

  • 2.2%

  • 19.3%

  • 22.6%

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