Weafer Inc. reported the following results from last year's operations:
-Last year's return on investment (ROI) was closest to:
Definitions:
Fixed Cost
Costs that do not vary with the volume of output or sales, such as rent, salaries, and insurance premiums.
Target Cash Balance
The optimal amount of cash that a company aims to maintain to handle its operational and transactional needs.
Carrying Costs
The total expenses associated with holding or maintaining an asset over time, including storage, insurance, and taxes.
Holding Cash
Maintaining a portion of one's assets in liquid cash form to meet immediate needs or prepare for future expenses or investment opportunities.
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