Fern Company Has a Target Rate of Return of 14

question 121

Multiple Choice

Fern Company has a target rate of return of 14%, an ROI of 38%, and capital turnover of 2.5. The sales margin for Fern Company would be closest to

• A)6%.
• B)15%.
• C)95%.
• D)35%.

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Definitions:

Marketing

The business process of identifying, anticipating, and satisfying customers' needs and wants through creating, offering, and exchanging products of value.

Operations

The day-to-day activities involved in running a business, especially those related to production and delivery of goods and services.

Seasonal Demand

The fluctuation in consumer demand for particular products or services at different times of the year, influenced by seasons and holidays.

Manufacturing Capacity

The maximum amount of products that can be produced in a manufacturing facility within a given timeframe, considering the limitations of resources and space.