Calculate the Return on Investment for an Advertisement from the Given

question 54

Multiple Choice

Calculate the return on investment for an advertisement from the given data. Net sales is $1,000, and advertising cost is $50.

• A) 18
• B) 19
• C) 21
• D) 23
• E) 25

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Definitions:

Marginal External Costs

The additional cost imposed on third parties not involved in a transaction or decision, for each additional unit produced or consumed.

Peach Canners

Peach canners are production facilities or workers involved in preserving peaches by canning them, which involves processing, sealing in an airtight container, and sterilizing to extend shelf life.

Market Efficiency

The extent to which market prices fully reflect all available information, making it impossible to consistently achieve higher returns.

Emissions

The release or discharge of substances (like gases or pollutants) into the environment, often from industrial or vehicular sources.