Chiodini Inc.has a $900,000 investment opportunity that involves sales of $2,430,000, fixed expenses of $1,044,900, and a contribution margin ratio of 50% of sales.The ROI for this year's investment opportunity considered alone is closest to:

A) 16.3%
B) 18.9%
C) 7.0%
D) 135.0%

Question

Alyssa Tollefsen · Accepted Answer

Final Answer : B, Explanation :    ROI = Net operating income ÷ Average operating assets = $170,100 ÷ $900,000 = 18.9%

Chiodini Inc.has a $900,000 investment opportunity that involves sales of $2,430,000, fixed expenses of $1,044,900, and a contribution margin ratio of 50% of sales.The ROI for this year's investment opportunity considered alone is closest to:

A) 16.3%
B) 18.9%
C) 7.0%
D) 135.0%

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Learning Objectives

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Chiodini Inc.has a $900,000 investment opportunity that involves sales of $2,430,000, fixed expenses of $1,044,900, and a contribution margin ratio of 50% of sales.The ROI for this year's investment opportunity considered alone is closest to:A) 16.3%B) 18.9%C) 7.0%D) 135.0%

Definitions

Learning Objectives

Learning Objectives

Related questions

Chiodini Inc.has a $900,000 investment opportunity that involves sales of $2,430,000, fixed expenses of $1,044,900, and a contribution margin ratio of 50% of sales.The ROI for this year's investment opportunity considered alone is closest to:

A) 16.3%
B) 18.9%
C) 7.0%
D) 135.0%