The Following Information Is Available for the Paul Ryan Company

question 122

Multiple Choice

The following information is available for the Paul Ryan Company:
$\begin{array}{ll}\text { Sales for year } & \$ 150,000 \\\text { Average invested capital for year } & \$ 156,250 \\\text { Returnon investment } & 10 \%\end{array}$
What is the return on sales?

• A) 10.00%
• B) 10.42%
• C) 62.50%
• D) 100.00%

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Definitions:

Production Constraint

A limitation or restriction in the production process, such as limited resources or capacity, that affects output.

Constrained Resource

A limited resource within a manufacturing or production process that restricts the output volume.

Obsolete Inventory

Items in stock that are out of date or no longer in demand, which are unlikely to be sold.

Decision

The process or action of choosing among alternatives, often based on analysis and information to achieve a desired goal.