Question
Swifty Corporation has gathered the following information concerning one model of shoe: Variable manufacturing costs $40000 Variable selling and administrative costs $20000 Fixed manufacturing costs
Swifty Corporation has gathered the following information concerning one model of shoe:
| Variable manufacturing costs | $40000 |
| Variable selling and administrative costs | $20000 |
| Fixed manufacturing costs | $160000 |
| Fixed selling and administrative costs | $120000 |
| Investment | $1800000 |
| ROI | 20% |
| Planned production and sales | 5000 pairs |
What is the desired ROI per pair of shoes?
a) $72
b) $68
c) $178
d) $140
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Introduction To Management Accounting
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Dave Burgstahler, Jeff O. Schatzberg
16th Global Edition
0273790013, 978-0273790013
