Robichau Incorporated reported the following results from last year's operations: Sales $ 6,300,000 Variable expenses 4,930,000 Contribution
Fantastic news! We've Found the answer you've been seeking!
Question:
Robichau Incorporated reported the following results from last year's operations:
Sales $ 6,300,000 Variable expenses 4,930,000
Contribution margin 1,370,000
Fixed expenses 803,000
Net operating income $ 567,000
Average operating assets $ 3,000,000
At the beginning of this year, the company has a $900,000 investment opportunity with the following characteristics:
Sales $ 1,530,000
Contribution margin ratio 30% of sales
Fixed expenses $ 306,000
The company's minimum required rate of return is 20%.
The ROI for this year's investment opportunity considered alone is closest to:
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Posted Date: