Wacker Company Has Two Regional Offices What Is the Adelaide Division's Return on Investment?
A)0

question 117

Multiple Choice

Wacker Company has two regional offices.The data for each follows:
$$\begin{array} { l r r } & \text { Adelaide } & \text { Perth } \\\text { Revenues } & \$ 580000 & \$ 596000 \\\text { Operating assets } & 4800000 & 9000000 \\\text { Net operating profit } & 2016000 & 2400000\end{array}$$
What is the Adelaide Division's return on investment?

• A)0.42
• B)0.54
• C)0.96
• D)4.12

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Definitions:

Resource Prices

Costs associated with the inputs used in the production of goods and services, such as materials and labor.

Economic Profits

represent the difference between a firm's total revenues and its total costs, including both explicit and implicit costs, reflecting excess earnings over opportunity costs.

Purely Competitive

Describes a market structure characterized by many sellers and buyers, where no single entity has the power to influence the market price.

Positive Economic Profits

Profits that exceed the opportunity costs of a production enterprise, indicating a more favorable outcome than alternative investments.