Camden Corporation Has Operating Income of $87,000, a Sales Margin

question 100

Multiple Choice

Camden Corporation has operating income of $87,000, a sales margin of 15%, and capital turnover of 2.5. The return on investment (ROI) for Camden Corporation would be closest to

• A)6%.
• B)38%.
• C)107%.
• D)2%.

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Definitions:

Management Planning

The process of setting goals, defining strategies, and outlining tasks and schedules to achieve the objectives of an organization.

Selling Prices

The amounts for which goods or services are offered for sale to consumers or other businesses.

Overhead Controllable Variance

The difference between the actual overhead incurred and the overhead costs that should have been incurred, based on a standard or budget, that management had control over.

Budgeted Overhead

The estimated costs for running a business, not directly tied to production but expected to occur within a specific budget period.