Bogey Co Recorded Operating Data for Its Cheap Division for the the Year

question 8

Multiple Choice

Bogey Co. recorded operating data for its Cheap division for the year. Bogey requires its return to be 10%. $$\begin{array} { l r } \text { Sales } & \$ 1,400,000 \\\text { Controllable margin } & 160,000 \\\text { Total average assets } & 4,000,000 \\\text { Fixed costs } & 100,000\end{array}$$ What is the ROI for the year?

• A)4%
• B)35%
• C)6%
• D)1.5%

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Definitions:

1952

The year 1952, significant for various historical events including the U.S. presidential election where Dwight D. Eisenhower was elected President.

Quota System

A method for controlling immigration or trade by allocating specific limits to certain groups or countries.

Immigrants

People who move to a country other than their native one to live, often in search of better living conditions, employment, or to escape conflict.

Freedom

The power or right to act, speak, or think as one wants without hindrance or restraint.