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Question(s) / Instruction(s):

Safety Seats Company recorded operating data for its auto accessories division for the year.

Sales                                            $375,000

Contribution margin                       75,000

Total direct fixed costs                   45,000

Average total operating assets  200,000

How much is ROI for the year if management is able to identify a way to improve the contribution margin by $15,000, assuming fixed costs are held constant?

A.            12.0%

B.            15.0%

C.            45.0%

D.            22.5%

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