Using the following data, estimate the new Return on Investment if there is a 10% increase in sales - with average operating assets as the base. Sales $2,000,000 Variable 1,100,000 costs Contribution 900,000 margin 45% Controllable fixed costs 300,000 Controllable $600,000 margin Average operating $5,000,000 assets
Using the following data, estimate the new Return on Investment if there is a 10% increase in sales - with average operating assets as the base. Sales $2,000,000 Variable 1,100,000 costs Contribution 900,000 margin 45% Controllable fixed costs 300,000 Controllable $600,000 margin Average operating $5,000,000 assets
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 13EA: Company A has current sales of $10,000,000 and a 45% contribution margin. Its fixed costs are...
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