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Naples, Inc How Much Is ROI for the Year If Management Is

question 69

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Naples, Inc.recorded operating data for its shoe division for the year.  Sales $750,000 Contribution margin 135,000 Total fixed costs 90,000 Average total operating assets 300,000\begin{array} { l r } \text { Sales } & \$ 750,000 \\\text { Contribution margin } & 135,000 \\\text { Total fixed costs } & 90,000 \\\text { Average total operating assets } & 300,000\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?

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Definitions:

Value Creating

The process of generating additional worth, utility, or benefits through innovative, entrepreneurial, or strategic activities.

Iterative Process

A method of achieving a desired outcome through repeated rounds of analysis or operations.

Loose Coalition

A temporary and informal alliance among various groups or individuals, often with less structure and organization than a formal coalition.

Reputations

The collective opinions, perceptions, or beliefs held about an individual's or entity's character, quality, or achievements, affecting their social or professional standing.

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