Vaughn Manufacturing recorded operating data for its auto accessories division for the year Sales $760000 Contribution margin 340000 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 60 0 78 0 50 0 11 8

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Question: Vaughn Manufacturing recorded operating data for its auto accessories division for the year. Sales $760000 Contribution margin 340000 Total direct fixed costs 90000 Average total

Vaughn Manufacturing recorded operating data for its auto accessories division for the year.

Sales	$760000
Contribution margin	340000
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?

60.0%

78.0%

50.0%

11.8%

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