KeyLine,Inc

question 54

Multiple Choice

KeyLine,Inc.,engages primarily in the manufacture of touch-sensitive LCD monitors.The company prices its products so that it earns a 20 percent return on investment.Which pricing objective is the company following?

• A)meet competition
• B)unit sales growth
• C)nonprice competition
• D)target return
• E)share of market

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Definitions:

Return On Assets

A financial ratio indicating the profitability of a company relative to its total assets, measuring efficiency in generating earnings.

Ratio Form

A mathematical expression that represents the relationship between two numbers or variables as a fraction.

Average Total Assets

A financial metric that represents the average value of all a company's assets over a specified period.

Return On Assets

This ratio indicates how efficiently a company uses its assets to generate profit, calculated as net income divided by total assets.