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:

Avoided

Refers to deliberately staying away from certain situations, actions, or thoughts due to fear, dislike, or perceived danger.

Ambivalence

Ambivalence is the state of having mixed feelings or contradictory ideas about something or someone.

Compliance

The act of conforming to a rule, command, or request, either willingly or through pressure or obligation.

Stuck

A state of being unable to move forward or make progress in a particular situation or task.