Calculate the ROI for this year investment opportunity

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Question - Lance Inc. has a $1,477,500 investment opportunity with the following characteristics:

Sales $2,500,000

Contribution margin ratio 50 % of sales

Fixed expenses $757,500

Calculate the ROI for this year's investment opportunity considered alone?

A) 8.1%

B) 100.0%

C) 33.3%

D) 8.6%

Reference no: EM132217337

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