An investment center generated a contribution margin of $200,000, fixed costs of $100,000 and sales of $1,000,000. The center's average operating assets were $400,000. How much is the return on investment?

Question

Quizplus · Accepted Answer

ROI (Return on Investment) = (Contribution Margin - Fixed Costs) / Average Operating Assets

= ($200,000 - $100,000) / $400,000

= $100,000 / $400,000

= 0.25

= 25%

Therefore, the answer is A) 25%.

An Investment Center Generated a Contribution Margin of $200,000, Fixed