Rhein Manufacturing Recorded Operating Data for Its Auto Accessories Division

question 153

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%

Master the skill of rounding numbers to the nearest cent in financial calculations.

Utilize shortcut methods for interest calculation by rounding principals.

Calculate the total amount of a loan including the principal and interest.

Understand the real-world application of interest calculation in loans and investments.

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