Crimpson Company has invested $2,100,000 in a plant to make commercial juicer machines. The target operating income desired from the plant is $305,000 annually. The company plans annual sales of 7,400 juicer machines at a selling price of $600 each.

What is the target rate of return on investment for Crimpson Company?

a 14.5%

b 12.5%

c 6.9 %