Naples, Inc How Much Is ROI for the Year If Management Is

Naples, Inc. recorded operating data for its shoe division for the year. $$\begin{array} { l r } \text { Sales } & \$ 750,000 \\\text { Contribution margin } & 135,000 \\\text { Total fixed costs } & 90,000 \\\text { Average total operating assets } & 300,000\end{array}$$ How much is ROI for the year if management is able to identify a way to improve the contribution margin by $30,000, assuming fixed costs are held constant?

A) 25%
B) 18%
C) 45%
D) 12%

Correct Answer:

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