The Following Data Are Available for the South Division of Redride

question 27

Multiple Choice

The following data are available for the South Division of Redride Products,Inc.and the single product it makes:
$\begin{array}{|l|r|}\hline \text { Unit Selling Price } & \$ 20 \\\hline \text { Variable Cost per Unit } & \$ 12 \\\hline \text { Annual Fixed Costs } & \$ 280,000 \\\hline \text { Average Operating Assets } & \$ 1,500,000 \\\hline\end{array}$
How many units must South sell each year to have an ROI of 16%?

• A) 52,000 units.
• B) 65,000 units.
• C) 240,000 units.
• D) 1,300,000 units.

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