Atlas Corporation has the following operating data for its electronics division: Sales: $900,000 Contribution Margin: $225,000 • • Total Fixed Costs: $125,000 • Average Operating Assets: $500,000 Calculate the new ROI if management implements changes that will increase the contribution margin by $45,000, while fixed costs remain constant.
Atlas Corporation has the following operating data for its electronics division: Sales: $900,000 Contribution Margin: $225,000 • • Total Fixed Costs: $125,000 • Average Operating Assets: $500,000 Calculate the new ROI if management implements changes that will increase the contribution margin by $45,000, while fixed costs remain constant.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Atlas Corporation has the following operating data for its electronics division:
Sales: $900,000
Contribution Margin: $225,000
•
•
Total Fixed Costs: $125,000
•
Average Operating Assets: $500,000
Calculate the new ROI if management implements changes that will increase the
contribution margin by $45,000, while fixed costs remain constant.
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