Perez Corp Its Required Return Is 10

question 52

Essay

Perez Corp. reported the following: $\begin{array}{lc}\text { Beginning of year operating assets } & \$ 3,200,000 \\\text { End of year operating assets } & 3,000,000 \\\text { Contribution margin } & 1,000,000 \\\text { Sales } & 5,000,000 \\\text { Controllable fixed costs } & 643,000\end{array}$ Its required return is 10%.
Instructions
Compute the company's ROI.

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Definitions:

Zero Standard Deviation

A statistical measure indicating that all values in a dataset are identical.

Utility Function

An analytic depiction of the way individuals order assortments of items based on their contentment or value received.

Equivalent Variation

A monetary measure of the change in utility or satisfaction that a consumer experiences due to a change in prices, holding utility constant.

Consumption

The use of goods and services by households or individuals for personal satisfaction or need.