Reference: 12-08
the Following Selected Data Pertain to Beck Co

question 64

Multiple Choice

Reference: 12-08
The following selected data pertain to Beck Co.'s Beam Division for last year: $$\begin{array} { | l | l | } \hline \text { Sales } & \$ 400,000 \\\hline \text { Variable expenses } & \$ 100,000 \\\hline \text { Traceable fixed expenses } & \$ 250,000 \\\hline \text { Average operating assets } & \$ 200,000 \\\hline \text { Minimum required rate of return } & 20 \% \\\hline\end{array}$$
-Largo Company recorded for the past year, sales of $750,000 and had average operatin? assets of $375,000. What is the margin that Largo Company needed to earn in order to achieve an ROI of 15%?

• A)2.00%.
• B)9.99%.
• C)7.50%.
• D)15.00%.

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Definitions:

Ozone Destroyers

Chemicals, such as chlorofluorocarbons (CFCs), that break down ozone in the atmosphere.

UV Radiation

Ultraviolet radiation, a form of energy emitted by the sun and artificial sources, known for its ability to damage DNA and cause sunburn.

Upper Layer

The topmost section or stratum of a particular structure or environment, often significant in ecological or atmospheric studies.

Ozone Destroyers

Substances known to cause the degradation of the ozone layer, which protects the Earth from harmful ultraviolet radiation.