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%

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Definitions:

Aggression-Approval

A NO.

George Homans

A foundational figure in sociology who is best known for his development of social exchange theory, which explains human behavior through the cost-benefit analyses of interactions.

Behavioral Outcomes

The observable and measurable actions or reactions of individuals or groups as a result of specific stimuli or interventions.

George Homans

An American sociologist known for his work in developing social exchange theory, which explains social behavior in terms of the exchange of goods, services, and recognition.