Answered: BR Company has a contribution margin of…

BR Company has a contribution margin of 16%. Sales are $446,000, net operating income is $71,360, and average operating assets are $132,000. What is the company's return on investment (ROI)?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

BR Company has a contribution margin of 16%. Sales are $446,000, net operating income is $71,360, and average operating assets are $132,000. What is the company's return on investment (ROI)?

Formula Formula ROI (%) = Net Income Principal Amount × 100

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