Bornita Industries recorded operating data for its shoe division for the year as follows: Sales: $820,000 Contribution

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Bornita Industries recorded operating data for its shoe division for the year as follows:

Sales: $820,000

Contribution Margin: $129,000

Total Fixed Costs: $90,600

Average Total Operating Assets: $360,000

What is the ROI for the year if management is able to identify a way to improve the contribution margin by $30,000, assuming fixed costs are held constant?

Related Book For answer-question

Managerial Accounting Creating Value in a Dynamic Business Environment

ISBN: 978-1259569562

11th edition

Authors: Ronald W. Hilton

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Posted Date: Dec 21, 2023 06:57 AM

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Bornita Industries recorded operating data for its shoe division for the year as follows: Sales: $820,000 Contribution

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To calculate the ROI Return on Investment we need to calculate the profit before taxes which is the ... View the full answer

Managerial Accounting Creating Value in a Dynamic Business Environment

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