Custom Shoes Co - What Is the Desired ROI Per Pair of Shoes

question 45

Multiple Choice

Custom Shoes Co.has gathered the following information concerning one model of shoe: $$\begin{array} { l l } \text { Variable manufacturing costs } & \$ 40,000 \\\text { Variable selling and administrative costs } & \$ 20,000 \\\text { Fixed manufacturing costs } & \$ 160,000 \\\text { Fixed selling and administrative costs } & \$ 120,000 \\\text { Investment } & \$ 1,700,000 \\\text { ROl } & 30 \% \\\text { Planned production and sales } & 5,000 \text { pairs }\end{array}$$
- What is the desired ROI per pair of shoes?

• A)$68
• B)$168
• C)$102
• D)$170

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Definitions:

Consumer Goods

Products and commodities produced for and sold to individuals for personal or household use.

Readily Understandable Language

Language that is easily comprehensible to a general audience without specialized knowledge.

Breach of Warranty

The failure to fulfill the terms of a promise or guarantee made about the quality or condition of a product or service.

Finance Company

A type of financial institution that provides loans to consumers and businesses, often for specific purchases such as vehicles, equipment, or home improvements.