Blossom Company had the following operating data for the current year: sales, $460000; contribution margin, $100000; total fixedcosts (controllable), $50000; and average total operating assets, $250000. If management is able to improve its contribution margin by$30000 and hold its fixed costs constant, what would Blossom's ROI be for the year?O 20%.O 32%.O 40%.O 17%.

The net income is calculated as the difference between the contribution margin and fixed costs. The…

Answered: Blossom Company had the following…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 40P

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Concord Corporation recorded operating data for its auto accessories division for the year. Sales Contribution margin Total direct fixed costs Average total operating assets $750000 12.0% 38.0% 56.0% 32.0% 250000 90000 500000 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 projected income statement of Hailwork’s company for the coming year follows: Sales $506300 |Total Variable Cost 170865 Contribution Margin ? Total Fixed Cost 175000 Operating Income ? Compute contribution margin and contribution margin ratio Compute the Operating Income How much revenue must be earned in order to breakeven What is the effect on contribution margin ratio if the unit selling price and unit variable cost increase by 10 percent each?
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