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The following results pertain to an investment center. Sales $ 1,500,000 Variable costs 800,000 Traceable fixed costs 100,000 Average investment 1,000,000 Divisional cost of capital
The following results pertain to an investment center.
Sales | $ | 1,500,000 | |
Variable costs | 800,000 | ||
Traceable fixed costs | 100,000 | ||
Average investment | 1,000,000 | ||
Divisional cost of capital (discount rate) | 10 | % | |
How much is the return on investment (ROI) for this investment center?
Multiple Choice
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5%.
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50%.
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60%.
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70%.
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75%.
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