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

question 78

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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?


Definitions:

Cost Basis

The original value of an asset for tax purposes, usually the purchase price, which is used to calculate capital gains or losses.

Brokerage Commission

Brokerage Commission is the fee charged by a brokerage firm for facilitating transactions between buyers and sellers in financial markets.

Outdoor Parking

An uncovered parking area designated for vehicles, typically without a roof or enclosure.

Cost of Land

The total expenses involved in acquiring land and preparing it for use, including purchase price, closing costs, surveying fees, and any costs related to clearing or improving the property.

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