Question: Rhein Manufacturing recorded operating data for its auto accessories division for the year. Sales $375,000 Contribution margin 75,000 Total direct fixed costs 45,000 Average total
Rhein Manufacturing recorded operating data for its auto accessories division for the year.
Sales $375,000
Contribution margin 75,000
Total direct fixed costs 45,000
Average total operating assets 300,000
How much is ROI for the year if management is able to identify a way to improve the contribution margin by $15,000, assuming fixed costs are held constant?
| 8% |
| 30% |
| 10% |
| 15% |
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