Question
QUESTION 24 The following data are available for the South Division of Manhattan Products, Inc. and the single product it makes: Unit selling price $
QUESTION 24
-
The following data are available for the South Division of Manhattan Products, Inc. and the single product it makes:
Unit selling price
$
40
Variable cost per unit
$
32
Annual fixed costs
$
300,000
Average operating assets
$
1,700,000
How many units must South sell each year to have an ROI of 12%?
A. 212,500.
B. 50,400.
C. 204,000.
D. 63,000.
1 points
QUESTION 25
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The Country Garden Company's current net operating income is $19,435 and its average operating assets are $84,500. The Country Garden's required rate of return is 20%. A new project being considered would require an investment of $16,500 and would generate annual net operating income of $3,630. What is the residual income of the new project?
A. 22.84%
B. 22.00%
C. $(165).
D. $330.
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