An Investment Center Generated a Contribution Margin of $200,000, Fixed

question 141

Multiple Choice

An investment center generated a contribution margin of $200,000, fixed costs of $100,000 and sales of $1,000,000. The center's average operating assets were $400,000. How much is the return on investment?

• A) 25%
• B) 175%
• C) 50%
• D) 75%

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Definitions:

Wheat Crops

Cultivated plants of the genus Triticum, grown as a cereal grain and a staple food commodity worldwide.

Pricing Strategy

The method a business uses to price its products or services, taking into account factors like cost, competition, demand, and value to the customer.

Pure Monopoly

A market structure where a single company or entity has exclusive control over the production and sale of a particular product or service.

Competitive Market

An economic market in which numerous producers compete against each other to satisfy the wants and needs of a large number of consumers.