Question: KIM Manufacturing recorded operating data for its auto accessories division for the year. Sales $750,000 Contribution margin 150,000 Total direct fixed costs (controllable) 90,000 Average
KIM Manufacturing recorded operating data for its auto accessories division for the year. Sales $750,000 Contribution margin 150,000 Total direct fixed costs (controllable) 90,000 Average total operating assets 450,000 How much is 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? 1 22.8% 2 18.0% 3 12.0% 4 20.0%
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
