Rhein Manufacturing recorded operating data for its auto accessories division for the year. $750,000 230,000 90,000 400,000 Sales Contribution Margin Total Direct Fixed Costs Average Total Operating Assets Management is able to identify a way to improve the contribution margin by $40,000. Calculate the revised ROI based on the improved ROI, assuming fixed costs are held constant. (Answer should be rounded to the nearest percent, i.e. 0.22333 should be entered as 22)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Rhein Manufacturing recorded operating data for its auto accessories division for the year.
$750,000
230,000
90,000
400,000
Sales
Contribution Margin
Total Direct Fixed Costs
Average Total Operating Assets
Management is able to identify a way to improve the contribution margin by $40,000.
Calculate the revised ROI based on the improved ROI, assuming fixed costs are held constant.
(Answer should be rounded to the nearest percent, i.e. 0.22333 should be entered as 22)
Transcribed Image Text:Rhein Manufacturing recorded operating data for its auto accessories division for the year. $750,000 230,000 90,000 400,000 Sales Contribution Margin Total Direct Fixed Costs Average Total Operating Assets Management is able to identify a way to improve the contribution margin by $40,000. Calculate the revised ROI based on the improved ROI, assuming fixed costs are held constant. (Answer should be rounded to the nearest percent, i.e. 0.22333 should be entered as 22)
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