Robichau Inc. reported the following results from last year's operations: Sales$6,300,000Variable expenses 4,930,000Contribution margin 1,370,000Fixed expenses 803,000Net operating income$567,000Average 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 salesFixed 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:
A. 50.0%
B. 10.0%
C. 51.0%
D. 17.0%
Answer: D
You might also like to view...
Charles Schwab's best customers are instantly directed to customer service representatives, while other customers have to wait longer. Charles Schwab is trying to ________
A) monitor its service systems B) empower the customers C) retain the patronage of profitable customers D) increase consumer participation E) standardize the service-performance process
When a company chooses to divest a particular strategic business unit, it ________
A) increases the advertising budget for that strategic business unit B) invests more in the strategic business unit to build its market share C) sells off or phases out the strategic business unit D) invests just enough in the strategic business unit to keep its market share at the current level E) gradually increases investment in the strategic business unit over time to maximize profits
As a societal characteristic, ______ refers to the tendency of a society to view people as interdependent with selected others who are part of stable groups, such as a kinship group.
A. collectivism B. individualism C. intranational D. differing
In a home sale, which of the following is most likely to be treated as a fixture?
A) A couch B) A ceiling fan C) A lawn mower D) All of the above