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Sunland Company recorded operating data for its auto accessories division for the year. Sales $920000 Contribution margin 170000 Total direct fixed costs 90000 Average total operating assets 500000 How much is ROI for the year if management is able to identify a way to improve the contribution margin by $50000, assuming fixed costs are held constant? O 9.8% O 44.0% O 26.0 % O 16.0 %

Sunland Company recorded operating data for its auto accessories division for the year. Sales $920000 Contribution margin 170000 Total direct fixed costs 90000 Average total operating assets 500000 How much is ROI for the year if management is able to identify a way to improve the contribution margin by $50000, assuming fixed costs are held constant? O 9.8% O 44.0% O 26.0 % O 16.0 %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sunland Company recorded operating data for its auto accessories division for the year: - Sales: $920,000 - Contribution margin: $170,000 - Total direct fixed costs: $90,000 - Average total operating assets: $500,000 How much is ROI for the year if management is able to identify a way to improve the contribution margin by $50,000, assuming fixed costs are held constant? - 9.8% - 44.0% - 26.0% - 16.0%
Transcribed Image Text:Sunland Company recorded operating data for its auto accessories division for the year: - Sales: $920,000 - Contribution margin: $170,000 - Total direct fixed costs: $90,000 - Average total operating assets: $500,000 How much is ROI for the year if management is able to identify a way to improve the contribution margin by $50,000, assuming fixed costs are held constant? - 9.8% - 44.0% - 26.0% - 16.0%
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