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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

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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

 

Paper#76129 | Written in 18-Jul-2015

Price : $22
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