Question
A company's invested capital is $13,000,000 and management has determined that the target rate of return on investment is 15%. Last year, the company produced
A company's invested capital is $13,000,000 and management has determined that the target rate of return on investment is 15%. Last year, the company produced and sold 131,000 units and this year expects units sales to be 10% below last year. The cost of the product is estimated to be $15 per unit. What is the target operating income per unit?
| a. | $16.54 | |
| b. | $9.90 | |
| c. | $13.53 | |
| d. | $6.50 |
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Financial Accounting Plus
Authors: Robert Libby, Patricia Libby, Daniel Short
7th Edition
0077480015, 9780077480011
