Question
Sheridan Company has gathered the following information for one model of its hiking boots: Variable manufacturing costs $44000 Variable selling and administrative costs $22000 Fixed
Sheridan Company has gathered the following information for one model of its hiking boots:
| Variable manufacturing costs | $44000 | ||
| Variable selling and administrative costs | $22000 | ||
| Fixed manufacturing costs | $160000 | ||
| Fixed selling and administrative costs | $120000 | ||
| Investment | $1700000 | ||
| ROI | 40 | % | |
| Planned production and sales | 4000 | pairs |
What is the desired ROI per pair of boots?
$210
$87
$170
$189
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
4th edition
978-0073369709, 73369705, 78025370, 978-0077444846, 77444841, 978-0078025372
