QUESTION 37

1. [HARD, do other questions first] The following data are available for the Eastern Division of Meyers Products, Inc. The company makes and sells a single product.

   Unit selling price of product $40

   Unit variable expense of product $24

   Total fixed expenses $560,000

   Average operating assets: $3,000,000

   How many units must the division sell each year to have an ROI of 16%?

   	A.	240,000
   	B.	65,000
   	C.	1,300,000
   	D.	52,000