Hatfield, Inc

question 146

Multiple Choice

Hatfield, Inc. sells its product for $14.00. Variable costs are $9.00 per unit, and Hatfield has $800,000 in fixed costs. Assume that Hatfield has $1.0 million in total debt and equity and a 40% tax rate. What is Hatfield's ROCE when sales are at 10% above breakeven?

• A)4.8%
• B)1.4%
• C)7.6%
• D)9.1%

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