Exhibit 8-3 
-Refer to Exhibit 8-3. The average variable cost at 3 units of output is
Definitions:
Return On Investment
A measurement of the profitability of an investment, calculated by dividing net profit by the initial capital cost.
Average Operating Assets
The average value of those assets used for the normal operation of a company over a specific period, often used in return on investment calculations.
Net Operating Income
The total profit of a company after operating expenses are subtracted from gross income.
Residual Income
The income that remains after subtracting all required costs of capital from operating income.
Q5: The profit-maximizing decision in choosing the optimal
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