EKPN Company Recorded the Following Operating Data What Is EKPN Company's ROI, Rounded to the Nearest Whole

question 43

Multiple Choice

EKPN Company recorded the following operating data: $$\begin{array} { l r } \text { Sales } & \$ 1,250,000 \\\text { Contribution margin } & 485,000 \\\text { Total direct fixed costs } & 400,300 \\\text { Total operating assets Jan. 1, 2016 } & 750,000 \\\text { Total operating assets Dec. 31, 2016 } & 790,000 \\\text { EKPN Company's desired return } & 12 \%\end{array}$$ What is EKPN Company's ROI, rounded to the nearest whole number?

• A)11%
• B)12%
• C)53%
• D)55%

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Definitions:

Selling And Administrative Expenses

Costs related to sales activities and general management of a business, excluding production costs.

Budgeting

The process of creating a plan to spend money, setting forth projections for revenues and expenses over a certain period of time.

Activity Variance

The difference between what was expected in terms of spending or usage during a period and what actually occurred.

Administrative Expenses

Costs associated with the general administration of a business, including items like salaries of executives, office supplies, and utilities.