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%

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!