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. 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:

Net Sales

The amount of sales revenue left after deducting sales returns, allowances, and discounts from the total gross sales.

Cost of Goods Sold

An expense measured as the total direct costs attributable to the production of goods sold by a company.

Departments

Distinct divisions within a company or organization designated to handle specific tasks or functions, such as sales, marketing, or human resources.

Catering Department

A division within a company or a facility that is responsible for providing food services for events, meetings, and functions.