Q1) Safety Seats Co. recorded operating data for its shoe division for the year. Company's desired ROI is 5%.
|
Sales
|
$500,000
|
|
Variable costs
|
400,000
|
|
Contribution margin
|
100,000
|
|
Total direct fixed costs
|
60,000
|
|
Average total operating assets
|
200,000
|
Which one of the given is actual ROI for the year?
a) 3%
b) 8%
c) 20%
d) 30%
e) 50%