Question: Marigold Corp. recorded operating data for its auto accessories division for the year. Sales $740000 Contribution margin 150000 Total direct fixed costs 90000 Average total

Marigold Corp. recorded operating data for its auto accessories division for the year.

Sales $740000
Contribution margin 150000
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?

12.0%

40.0%

12.2%

22.0%

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!