Looking for reliable answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Explore a wealth of knowledge from professionals across various disciplines on our comprehensive Q&A platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.
Sagot :
Answer:
See below
Explanation:
Given the above information, first we need to get the value of contribution margin , which is computed as;
Controllable margin = Contribution margin - Total direct fixed cost
$88,000 = Contribution margin - $100,000
Contribution margin = $88,000 + $100,000
Contribution margin = $188,000
Also,
Net income = Contribution margin - Total fixed expense
Net income = $188,000 - $100,000
Net income = $88,000
Return on investment = Net income ÷ Average operating assets
Return on investment = $88,000 ÷ $4,400,000
Return on investment = 2%
Therefore, the ROI for the year is 2%
Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.