Question: Cullumber Company had the following operating data for the current year: sales, $450000; contribution margin, $108000; total fixed costs (controllable), $55000; and average total operating

 Cullumber Company had the following operating data for the current year:

Cullumber Company had the following operating data for the current year: sales, $450000; contribution margin, $108000; total fixed costs (controllable), $55000; and average total operating assets, $250000. If management is able to improve its contribution margin by $17000 and hold its fixed costs constant, what would Cullumber's ROI be for the year? 21%16%43%28%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!