The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales $1,008,000 $50.40 Variable expenses 604,800 30.24 Contribution margin 403,200 20.16 Fixed expenses 321,200 16.06 Net operating income 82,000 4.10 Income taxes @ 40 % 32,800 1.64 $2.46 Net operating income $49,200 The company had average operating assets of $490,000 during the year. Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms of margin and turnover.
The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales $1,008,000 $50.40 Variable expenses 604,800 30.24 Contribution margin 403,200 20.16 Fixed expenses 321,200 16.06 Net operating income 82,000 4.10 Income taxes @ 40 % 32,800 1.64 $2.46 Net operating income $49,200 The company had average operating assets of $490,000 during the year. Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms of margin and turnover.
Chapter22: S Corporations
Section: Chapter Questions
Problem 16CE
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Transcribed Image Text:The contribution format income statement for Huerra Company for last year is
given below:
Total
Unit
Sales
$1,008,000 $50.40
Variable expenses
604,800 30.24
Contribution margin
403,200 20.16
Fixed expenses
321,200
16.06
Net operating income 82,000
4.10
Income taxes @ 40 % 32,800
1.64
$2.46
Net operating income $49,200
The company had average operating assets of $490,000 during the year.
Compute the company's return on investment (ROI) for the period using the
ROI formula stated in terms of margin and turnover.
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