An Investment Center Generated a Contribution Margin of $400000 Fixed

question 6

Multiple Choice

An investment center generated a contribution margin of $400000 fixed costs of $200000 and sales of $2000000. The center's average operating assets were $800000. How much is the return on investment?

• A) 25%
• B) 175%
• C) 50%
• D) 75%

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Definitions:

Producer's Inventory

Refers to the goods and materials that a producer has in stock which are ready or will be ready for sale.

Brokers

Intermediaries that facilitate transactions between buyers and sellers in various markets, such as real estate or stocks, often for a commission or fee.

Independent Firms

Companies that operate on their own without being part of a larger corporation or group, often characterized by autonomy in decision-making.

Buyers and Sellers

Parties engaged in the exchange of goods or services for money or other compensation within a market.