Sales

$$256,500$

Selling and Administrative expenses

$$23,000$

$R$&$D$ expense

$$5,000$

Interest expense

$$800$

Losses on derivatives $($ OCl item$)$ $$1,600$

Income tax expense

$$28,500$

Cost of goods sold

$112,000$

Taxes

$30\%$

Average shareholder equity

$$500,000$

Compute ROE

$18\mathrm{.}25\%$

$12\mathrm{.}45\%$

$17\mathrm{.}44\%$

$16,5\%$