Rhein Manufacturing Recorded Operating Data for Its Auto Accessories Division

question 113

Multiple Choice

Rhein Manufacturing recorded operating data for its auto accessories division for the year. $\begin{array} { l r } \text { Sales } & \$ 750,000 \\\text { Contribution margin } & 150,000 \\\text { Total direct fixed costs } & 90,000 \\\text { Average total operating assets } & 400,000\end{array}$ How much is ROI for the year if management is able to identify a way to improve the contribution margin by $30000 assuming fixed costs are held constant?

• A)45.0%
• B)22.5%
• C)15.0%
• D)12.0%

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Definitions:

Triarchic Intelligence

A model proposed by psychologist Robert Sternberg that divides intelligence into three components: analytical, creative, and practical intelligence.

Linguistic Intelligence

Linguistic intelligence is one of Howard Gardner's multiple intelligences, referring to the ability to think in words and use language to express and appreciate complex meanings.

Howard Gardner

An American developmental psychologist best known for his theory of multiple intelligences, which posits that people have various kinds of intelligences, not just a single, general ability.

Skillful Production

Refers to the capacity to create or manufacture things with a high level of expertise and quality.