Question
CVX Corporation, an oil supply and energy company, owns and manages gas stations in several US cities. CVX has a 15% required rate of return
CVX Corporation, an oil supply and energy company, owns and manages gas stations in several US cities. CVX has a 15% required rate of return on investment for a gas station to be considered viable. Operating data for three of its gas stations for 2019 are as follows:
| Spring Street | High Street | Campus Avenue | |
| Sales revenue | $17,000,000 | $13,500,000 | $15,000,000 |
| Operating assets | $7,000,000 | $7,000,000 | $5,000,000 |
| Operating income | $960,000 | $1,150,000 | $910,000 |
Which gas station (or stations), if any, are in danger of being closed due to poor performance?
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Forensic Accounting
Authors: Greg Shields
1st Edition
1727480988, 978-1727480986
