50.1K

Verified Solution

Link Copied!

The contribution format income statement for Huerra Company for last year is given below Total 1,002,000 50.10 Unit Sales Variable expenses 601,200 30.06 400,800 20.04 322,800 16.14 Contribution margin Fixed expenses Net operating income 78,000 3.90 1.56 Income taxes @ 40% 31,200 2.34 Net income $ 46,800 $ The company had average operating assets of $501,000 during the year. Required: 1. Compute the company's return on investment (ROI) for the period using the ROl formula stated in terms of margin and turnover. (Round your Turnover answer to 2 decimal places. Round your Margin and ROl percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) Margin Turnover ROI 2.00 The contribution format income statement for Huerra Company for last year is given below Total 1,002,000 50.10 Unit Sales Variable expenses 601,200 30.06 400,800 20.04 322,800 16.14 Contribution margin Fixed expenses Net operating income 78,000 3.90 1.56 Income taxes @ 40% 31,200 2.34 Net income $ 46,800 $ The company had average operating assets of $501,000 during the year. Required: 1. Compute the company's return on investment (ROI) for the period using the ROl formula stated in terms of margin and turnover. (Round your Turnover answer to 2 decimal places. Round your Margin and ROl percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) Margin Turnover ROI 2.00

Answer & Explanation Solved by verified expert

See Answer