Sales $21,000,000 Variable expenses 13,400,000 Contribution margin 7,600,000 Fixed expenses 5,920,000 Net operating income $1,680,000 Divisional operating assets $5,250,000   The Company had an Overall ROI of 18% last year (considering all di

profilesinh-s

Sales

$21,000,000

Variable expenses

13,400,000

Contribution margin

7,600,000

Fixed expenses

5,920,000

Net operating income

$1,680,000

Divisional operating assets

$5,250,000

 

The Company had an Overall ROI of 18% last year (considering all divisions). The company's East Division has an opportunity to add a new product line that would require an investment of $3,000,000. The cost and revenue characteristics of the new product line per year wouldbe as follows:

Sales 

$9,000,000

Variable expenses

65% of sales

Fixed expenses

$2,520,000

 

 

 

    • 12 years ago
    • 999999.99
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