BR Company has a contribution margin of 20%. Sales are $622,000, net operating income is $124,400, and average operating assets are $141,000. What is the company's return on investment (ROI)?   Multiple Choice   4.4%   20.0%   88.2%   0.2%

Q: Given the following data: Average operating assets Total liabilities Sales Contribution margin Net…

A: RETURN ON INVESTMENTReturn on investment is one of the profitability ratios which shows how much…

Q: Westerville Company reported the following results from last year's operations: Sales Variable…

A: Financial indicators such as ROI (Return on Investment) and MRRR (Minimum Required Rate of Return)…

Q: A1

A: Investment center I Given information, Controllable margin = $785,760Average operating assets =…

Q: Assume a company reported the following results: Sales Variable expenses Contribution margin Fixed…

A: Residual income: Residulal income means excess of income earned over the desired income. Desired…

Q: BR Company has a contribution margin of 16%. Sales are $446,000, net operating income is $71,360,…

A: Return On Investment:     This ratio is one of the most important ratios for calculating overall…

Q: A company  has invested assets of $3,500,000,   total sales of 30,000 units and a desired ROI per…

A: Total desired return =  invested assets x ROI = $3,500,000 x 20% = $700,000

Q: None

A: Step 1:  To calculate the return on investment (ROI), you can use the formula:  ROI = (Net Income /…

Cost-Volume-Profit Analysis

Cost Volume Profit (CVP) analysis is a cost accounting method that analyses the effect of fluctuating cost and volume on the operating profit. Also known as break-even analysis, CVP determines the break-even point for varying volumes of sales and cost structures. This information helps the managers make economic decisions on a short-term basis. CVP analysis is based on many assumptions. Sales price, variable costs, and fixed costs per unit are assumed to be constant. The analysis also assumes that all units produced are sold and costs get impacted due to changes in activities. All costs incurred by the company like administrative, manufacturing, and selling costs are identified as either fixed or variable. 

Marginal Costing

Marginal cost is defined as the change in the total cost which takes place when one additional unit of a product is manufactured. The marginal cost is influenced only by the variations which generally occur in the variable costs because the fixed costs remain the same irrespective of the output produced. The concept of marginal cost is used for product pricing when the customers want the lowest possible price for a certain number of orders. There is no accounting entry for marginal cost and it is only used by the management for taking effective decisions.