Everclean Company Cleans Draperies

question 72

Multiple Choice

Everclean Company cleans draperies. It charges $75 to clean a full-size drape, and its variable and fixed costs are $40 per drape and $8,000 per year, respectively. Given this data, how many drapes must the company clean to make $50,000 profit?

• A) 967
• B) 1,657
• C) 2,000
• D) 2,320

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Definitions:

Investment Centre Performance

An evaluation of a business unit's profitability and efficiency in managing its assets to generate profits.

Organisation's Minimum Required Rate Of Return

The lowest acceptable return on investment that an organization deems necessary, reflecting its risk tolerance and financial objectives.

Capital Invested

The total amount of money that has been put into a company's projects, assets, or business endeavors to generate growth or profits.

Total Sales

The complete sum of all sales transactions made by a business within a specified period.