Given That a Company Charges $10 Per Unit,has a Cost

question 7

Multiple Choice

Given that a company charges $10 per unit,has a cost per unit of $9.10 and a tax rate of 28 percent,and requires $4.50 of invested capital per unit,what is the ROIC?

• A)3.82 percent.
• B)5.18 percent.
• C)9.44 percent.
• D)14.40 percent.

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Definitions:

Rescission

The act of cancelling a contract and returning all involved parties to the positions they were in before the contract was made.

Innocent

Innocent refers to not being guilty of a crime or offense, or lacking knowledge of wrongdoing.

Void

Void refers to a legal declaration that a contract or transaction is null, having no effect or force in law, typically due to failing to meet certain legal requirements.

Mistake

An error or misunderstanding in the terms or conditions of a contract that can lead to its revocation or modification if all parties agree or if a court intervenes.