Rhein Manufacturing Recorded Operating Data for Its Auto Accessories Division

question 136

Multiple Choice

Rhein Manufacturing recorded operating data for its auto accessories division for the year. $$\begin{array} { l r } \text { Sales } & \$ 750,000 \\\text { Contribution margin } & 150,000 \\\text { Total direct fixed costs } & 90,000 \\\text { Average total operating assets } & 400,000\end{array}$$ 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?

• A)45.0%
• B)22.5%
• C)15.0%
• D)12.0%

---

Definitions:

Enamine

A compound containing a nitrogen atom connected to a carbon atom that is part of a double bond, resulting from the reaction between a secondary amine and an aldehyde or ketone.

α-Halogenate

Refers to the introduction of a halogen atom (e.g., chlorine, bromine) into the alpha position of an organic molecule relative to a functional group.

Ketones

Organic compounds containing a carbonyl group (C=O) flanked by two carbon atoms, featured in various chemical reactions.

Aldehydes

Organic compounds characterized by the functional group -CHO, consisting of a carbonyl center bonded to hydrogen and an R group, used in various chemical syntheses.