What Is the Firm's New Return on Assets (Choose the Closest

question 16

Multiple Choice

What is the firm's new return on assets (choose the closest answer) ?

• A)33.33%
• B)28%
• C)33.44%
• D)12%

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Definitions:

Variable Costs

Costs that vary in total in direct proportion to changes in the level of activity or volume of output produced.

Constraint

A limitation or restriction that affects an organization's ability to achieve its objectives, such as limited resources or time.

Production Bottleneck

A point in the manufacturing process where the demand for a company’s product exceeds the ability to produce the product. Also referred to as a constraint.

Markup Percentage

The percentage added to the cost of a product to determine its selling price.