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25. Real Wood Structures Company has invested $1,150,000 in a plant to build small tool sheds. The target operating income desired from the plant is
25.
Real Wood Structures Company has invested $1,150,000 in a plant to build small tool sheds. The target operating income desired from the plant is $115,000 annually. The company plans annual sales of 1,400 sheds at a selling price of $1,100 each. What is the target rate of return on investment for Real Wood Structures Company? A. 90% B. 10% C. 7.5% D. 13%Step by Step Solution
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