Question: Waterway Industries recorded operating data for its auto accessories division for the year. Sales $870000 Contribution margin 320000 Total direct fixed costs 90000 Average total
Waterway Industries recorded operating data for its auto accessories division for the year.
| Sales | $870000 |
| Contribution margin | 320000 |
| 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 $40000, assuming fixed costs are held constant?
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