Rhein Manufacturing Recorded Operating Data for Its Auto Accessories Division

question 158

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 $30000 assuming fixed costs are held constant?

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

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Definitions:

Live Interaction

Real-time communication or engagement between two or more individuals, often implying face-to-face or digital interaction.

Habituation Tasks

Experimental procedures used to measure how the frequency or intensity of a subject's response decreases when a stimulus is presented repeatedly.

Unchanging Stimulus

A constant and repetitive sensory input that does not vary over time.

Communicate

The act of sharing or exchanging information, ideas, or feelings through speech, writing, gestures, or other modes.