Naples, Inc How Much Is ROI for the Year If Management Is

question 147

Multiple Choice

Naples, Inc. recorded operating data for its shoe division for the year. $$\begin{array} { l r } \text { Sales } & \$ 750,000 \\\text { Contribution margin } & 135,000 \\\text { Total fixed costs } & 90,000 \\\text { Average total operating assets } & 300,000\end{array}$$ 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?

• A)25%
• B)18%
• C)45%
• D)12%

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Definitions:

Purulent Drainage

A type of fluid that is released from a wound, indicating infection, and is often thick, yellow, green, or brown in color.

Contaminated Wound

A wound with the presence of bacteria or other pathogens that may potentially lead to infection.

Nonblanchable Erythema

A redness of the skin that does not turn white (blanch) when pressed, often an early indicator of pressure ulcers.

Pressure Ulcer

A localized injury to the skin and/or underlying tissue, typically over a bony prominence, as a result of pressure or pressure in combination with shear.