Robichau Incorporated reported the following results from last year's operations: $ 6,300,000 Sales Variable expenses Contribution margin Fixed expenses 4,930,000 1,370,000 803,000 Net operating income $ 567,000 Average operating assets $3,000,000 At the beginning of this year, the company has a $900,000 investment opportunity with the following characteristics: Sales $ 1,530,000 Contribution margin ratio 30 Fixed expenses The company's minimum required rate of return is 20%. Last year's return on investment (ROI) was closest to: Multiple Choice 47.6% 45.7% 9.0% 18.9% $ 306,000 % of sales
Robichau Incorporated reported the following results from last year's operations: $ 6,300,000 Sales Variable expenses Contribution margin Fixed expenses 4,930,000 1,370,000 803,000 Net operating income $ 567,000 Average operating assets $3,000,000 At the beginning of this year, the company has a $900,000 investment opportunity with the following characteristics: Sales $ 1,530,000 Contribution margin ratio 30 Fixed expenses The company's minimum required rate of return is 20%. Last year's return on investment (ROI) was closest to: Multiple Choice 47.6% 45.7% 9.0% 18.9% $ 306,000 % of sales
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Robichau Incorporated reported the following results from last year's operations:
$ 6,300,000
4,930,000
1,370,000
803,000
Net operating income
$ 567,000
Average operating assets $3,000,000
At the beginning of this year, the company has a $900,000 investment opportunity with the following characteristics:
Sales
$ 1,530,000
Sales
Variable expenses
Contribution margin
Fixed expenses
Contribution margin ratio 30
Fixed expenses
The company's minimum required rate of return is 20%.
Last year's return on investment (ROI) was closest to:
Multiple Choice
47.6%
45.7%
9.0%
18.9%
$ 306,000
% of sales
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