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

question 69

Multiple Choice

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

• A)25%
• B)18%
• C)45%
• D)12%

Apply critical thinking to assess the impact of financing decisions on a company’s financial statements.

Understand the principles of calculating bond interest payments.

Analyze a company's debt-to-equity ratio and interpret its financial implications.

Prepare journal entries for bond issuance including the recognition of discounts/premiums.

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Definitions:

Better Health

An improved state of physical, mental, and social well-being beyond the mere absence of disease or infirmity.

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Sudden, intense, and vivid recollections of past experiences, often traumatic, that intrude into the present.