Asked by
Diana Olivas
on Nov 12, 2024
Verified
How many units must the South Division sell each year to have an ROI of 16%
A) 52,000.
B) 240,000.
C) 65,000.
D) 130,000.
ROI
Return on Investment is a measure used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the cost of the investment.
Operating Assets
Assets used by a business in its daily operations to generate income, including cash, inventory, and equipment.
Fixed Costs
Refers to costs that do not change in total regardless of the level of production or sales activity, like rent, salaries, and insurance.
- Acquire an understanding of the idea of Return on Investment (ROI) and the manner in which it is figured.
- Understand the role of fixed and variable costs in financial decision-making.
Verified Answer
KC
Learning Objectives
- Acquire an understanding of the idea of Return on Investment (ROI) and the manner in which it is figured.
- Understand the role of fixed and variable costs in financial decision-making.