Dingo Division's Operating Results Include: Controllable Margin of $150000 Sales

question 127

Multiple Choice

Dingo Division's operating results include: controllable margin of $150000 sales totaling $1200000 and average operating assets of $500000. Dingo is considering a project with sales of $100000 expenses of $86000 and an investment of average operating assets of $200000. Dingo's required rate of return is 9%. Should Dingo accept this project?

• A) Yes ROI will drop by 6.6% which is still above the minimum required rate of return.
• B) No the return is less than the required rate of 9%.
• C) Yes ROI still exceeds the cost of capital.
• D) No ROI will decrease to 7%.

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Definitions:

Lens

A transparent structure in the eye that focuses light rays onto the retina to form clear images.

Retina

A light-sensitive layer at the back of the eye that converts light into electrical signals sent to the brain.

Keratoconjunctivitis

An inflammation of the cornea and conjunctiva of the eye, often resulting from infection, dry eyes, or exposure to irritants.

Kerat/o

A prefix in medical terms related to cornea or keratin.