Sunland Company recorded operating data for its auto accessories division for the year. Sales $920000 Contribution margin 170000 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? O 9.8% O 44.0% O 26.0 % O 16.0 %

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 42E: Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller...
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Sunland Company recorded operating data for its auto accessories division for the year.
Sales
Contribution margin
Total direct fixed costs
Average total operating assets
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?
O 9.8%
O 44.0%
$920000
170000
90000
500000
O26.0 %
O 16.0 %
Transcribed Image Text:Sunland Company recorded operating data for its auto accessories division for the year. Sales Contribution margin Total direct fixed costs Average total operating assets 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? O 9.8% O 44.0% $920000 170000 90000 500000 O26.0 % O 16.0 %
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