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Marigold corporation reported operating data for its Cheap division for the year

Accounting

Marigold corporation reported operating data for its Cheap division for the year. Marigold requires its return to be 10%.

Sales                       $2,000,000

Controllable margin   $80,000

Total average assets  $4,000,000

Fixed costs               $100,000

What is the ROI for the year?

a) 7%

b) 3%

c) 2%

d) 50%

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