Cable Company Had the Following Results for the Year Just $\begin{array}{lccc}\text { Operating Income } & \$ 2.500 \\\text { Turnover } & 4 \\\text { Return on Investment } & 20 \%\end{array}$

question 129

Multiple Choice

Cable Company had the following results for the year just ended:
$\begin{array}{lccc}\text { Operating Income } & \$ 2.500 \\\text { Turnover } & 4 \\\text { Return on Investment } & 20 \%\end{array}$

What were Cable Company's average operating assets during the year?

• A) $10,000.
• B) $12,500.
• C) $50,000.
• D) $200,000.

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Definitions:

Unprofitable Products

Items or services that generate less revenue than the cost associated with producing and selling them.

Price Elasticity

An indicator of the sensitivity of the amount of a good demanded in response to its price changes.

Cost-Plus Pricing

A technique for pricing where a distinct markup is added to the unit cost of a product to establish its selling price.

Linear Programming

A mathematical method used to determine the best possible outcome or solution from a given set of parameters or constraints, usually applied in maximizing or minimizing a linear function.