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:

Bank Teller

An employee of a bank who deals directly with customers, handling withdrawals, deposits, and other transactions.

Order Fulfillment Center

A facility that specializes in receiving, processing, and shipping orders to end customers, acting as a crucial link in the supply chain.

Sorting Machine

A device used for separating items into categories or groups based on specified criteria.

Poisson Distribution

A statistical distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space, assuming these events occur with a known constant rate and independently of the time since the last event.