Reference: 12-10
Harstin Corporation Has Provided the Following Data -During Cummings Most Profitable Year Its Net Income Was $25,000

question 51

Multiple Choice

Reference: 12-10
Harstin Corporation has provided the following data: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 625,000 \\\hline \text { Gross margin } & 70,000 \\\hline \text { Net operating income } & 50,000 \\\hline \text { Stockholders' equity } & 90,000 \\\hline \text { Average operating assets } & 250,000 \\\hline \text { Residual income } & 20,000 \\\hline\end{array}$$
-During Cummings most profitable year its net income was $25,000. What is the ROI if the investment was $50,000?

• A)63%.
• B)51%.
• C)50%.
• D)28%.

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Definitions:

Gross Private Domestic Investment

The aggregate amount of investment in physical assets, such as buildings and machinery, by the private sector within a country.

Military Goods

Products and services specifically designed, manufactured, and supplied for use by armed forces.

Intermediate Products

These are goods that are used as inputs in the production of other goods and services, not intended for final consumption.

Final Products

Final products are goods or services that have completed the production process and are ready for sale to consumers or businesses, without needing further transformation.