Reference: 12-02
the Following Data Are Available for the South

question 53

Multiple Choice

Reference: 12-02
The following data are available for the South Division of Redride Products, Inc. and the single product it makes: $$\begin{array} { | l | l | } \hline \text { Unit selling price } & \$ 20 \\\hline \text { Variable cost per unit } & \$ 12 \\\hline \text { Annual fixed costs } & \$ 280,000 \\\hline \text { Average operating assets } & \$ 1,500,000 \\\hline\end{array}$$
-How much is the return on the investment?

• A)40%.
• B)25%.
• C)12.5%.
• D)20%.

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Definitions:

Jurisdiction

The official power to make legal decisions and judgments, typically in a specific geographic area or over certain types of cases.

Legal Rules

Principles or guidelines established by authority, society, or custom, which are enforceable through legal institutions.

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Related to or originating from a country different from the one being referred to, often implies external or outside influence or components.

Alien Corporations

Companies that are incorporated in one country but do business in another.