The Following Information Is Available for the Bumbling Company $\begin{array} { l } \text { Sales}& \$250,000\\ \text {Invested capital }&156,250 \\ \text { ROI}& 10\%\\\end{array}$

question 157

Multiple Choice

The following information is available for the Bumbling Company: $\begin{array} { l } \text { Sales}& \$250,000\\ \text {Invested capital }&156,250 \\ \text { ROI}& 10\%\\\end{array}$
The net income is:

• A) $93,750
• B) $50,000
• C) $156,250
• D) $15,625

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Definitions:

Consumers

Individuals or entities that purchase goods and services for personal use or consumption.

External Costs

Costs incurred as a result of an economic activity that affects third parties who did not choose to incur that cost.

Free Enterprise

An economic system where private businesses operate in competition, largely free of state control, with the prices of goods and services determined by the open market.

Capital

Financial assets or the financial value of assets, such as buildings, machinery, and equipment, used to produce goods and services.