The Following Data Are Available for the North Division of Chemicals

question 118

Multiple Choice

The following data are available for the North Division of Chemicals Products,Inc.and the single product it makes:
$\begin{array}{|l|r|}\hline \text { Unit Selling Price } & \$ 25 \\\hline \text { Variable Cost per Unit } & \$ 15 \\\hline \text { Annual Fixed Costs } & \$ 320,000 \\\hline \text { Average Operating Assets } & \$ 1,500,000 \\\hline\end{array}$
How many units must South sell each year to have an ROI of 18%?

• A) 32,760 units.
• B) 35,760 units.
• C) 240,000 units.
• D) 1,300,000 units.

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Definitions:

Industry Life Cycle

A sequence of stages from introduction, growth, and maturity to decline that industries typically go through, affecting companies’ strategies and performances.

Dividend Payout Rates

The proportion of a company's earnings paid out to shareholders in the form of dividends, usually expressed as a percentage.

R&D Spending

The amount of money that a company allocates towards research and development to innovate or improve its products or services.

Money Supply

The total amount of monetary assets available within an economy at a specific time.