A company has an Investment opportunity with the following Information: Sales $ 420,000 Contribution margin ratio Fixed expenses 70 % of sales $ 252,000 $ 350,000 Average operating assets The company's minimum required rate of return Is 10%. What Is the ROI related to this Iinvestment opportunity? ROI %
A company has an Investment opportunity with the following Information: Sales $ 420,000 Contribution margin ratio Fixed expenses 70 % of sales $ 252,000 $ 350,000 Average operating assets The company's minimum required rate of return Is 10%. What Is the ROI related to this Iinvestment opportunity? ROI %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:A company has an Investment opportunity with the following Information:
$ 420,000
Sales
Contribution margin ratio
Fixed expenses
Average operating assets
70% of sales
$ 252,000
$ 350,000
The company's minimum requlred rate of return Is 10%.
What Is the ROI related to this Investment opportunity?
ROI
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