An Investment Centre Generated a Contribution Margin of $200,000, Controllable

question 78

Multiple Choice

An investment centre generated a contribution margin of $200,000, controllable fixed costs of $100,000 and sales of $1,000,000.The centre's average operating assets were $400,000.How much is the return on investment?

• A)25%
• B)175%
• C)50%
• D)75%

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Definitions:

Molecules

The smallest units of a chemical substance that retain their unique chemical identity.

Higher Boiling

Referring to a substance with a higher boiling point compared to another substance, often used to differentiate between similar compounds in purification processes.

Ketone

An organic compound characterized by a carbonyl group (C=O) bonded to two carbon atoms.

Acetone

A colorless, volatile, and flammable liquid used as a solvent, known chemically as propan-2-one or dimethyl ketone.