A Company Using Cost-Plus Pricing Has an ROI of 24

question 33

Multiple Choice

A company using cost-plus pricing has an ROI of 24%, total sales of 20,000 units and a desired ROI per unit of $30. What was the amount of investment?

• A) $144,000
• B) $2,500,000
• C) $456,000
• D) $789,475

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Definitions:

Better-than-average Effect

A cognitive bias where individuals overestimate their own qualities and abilities relative to others.

Self-serving Bias

A common tendency for individuals to attribute positive outcomes to their own character but attribute negative outcomes to external factors.

Narcissism

A personality trait characterized by an inflated sense of self-importance, need for admiration, and lack of empathy for others.

Learned Helplessness

A scenario where a person is burdened with feelings of inability to exert control, typically following a harrowing event or successive failures.