Champion Cooling Co

question 102

Multiple Choice

Champion Cooling Co. signed an exclusive contract with a scrap metal dealer that is willing to pay 33 cents a pound for scrap copper. If the cost of goods sold reported by Champion amounts to $100,000 and the scrap cost is equal to $20,000 for their 3030 pounds of scrap copper, what is Champion's scrap efficiency?

• A) 7.60
• B) 5.00
• C) 6.26
• D) 9.33
• E) 3.18

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Definitions:

Expected Rate of Return

The anticipated amount of profit or loss from an investment, considering the potential risks and rewards.

Interest Rate

The percentage at which interest is charged or paid on a loan or investment over a specific period of time.

Normal Profit

The profit level that allows a business to cover its costs, including the opportunity cost of capital, without making an economic profit.

Economic Cost

The total cost of choosing one action over another, including both explicit costs (direct payments) and implicit costs (opportunity costs).