Perez Corp. reported the following: $\begin{array}{lc}
\text { Beginning of year operating assets } & \$ 3,200,000 \
\text { End of year operating assets } & 3,000,000 \
\text { Contribution margin } & 1,000,000 \
\text { Sales } & 5,000,000 \
\text { Controllable fixed costs } & 643,000
\end{array}$ Its required return is 10%.
Instructions
Compute the company's ROI.

Question

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The Answer of Perez Corp. reported the following: $\begin{array}{lc}
\text { Beginning of year operating assets } & \$ 3,200,000 \
\text { End of year operating assets } & 3,000,000 \
\text { Contribution margin } & 1,000,000 \
\text { Sales } & 5,000,000 \
\text { Controllable fixed costs } & 643,000
\end{array}$ Its required return is 10%.
Instructions
Compute the company's ROI.

Perez Corp Its Required Return Is 10