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Rhein Manufacturing Recorded Operating Data for Its Auto Accessories Division

question 44

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Rhein Manufacturing recorded operating data for its auto accessories division for the year.  Sales $750,000 Contribution margin 150,000 Total direct fixed costs 90,000 Average total operating assets 400,000\begin{array}{lr}\text { Sales } & \$ 750,000 \\\text { Contribution margin } & 150,000 \\\text { Total direct fixed costs } & 90,000 \\\text { Average total operating assets } & 400,000\end{array} How much is ROI for the year if management is able to identify a way to improve the contribution margin by $30,000, assuming fixed costs are held constant?


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