Howard Company Provided the Following Selected Information About Its Consumer $$\begin{array} { l l } \text { Desired ROI } & 12 \% \\\text { Net Income } & \$ 150,000 \\\text { Residual Income } & \$ 30,000\end{array}$$

question 76

Multiple Choice

Howard Company provided the following selected information about its consumer products division for the current year: $$\begin{array} { l l } \text { Desired ROI } & 12 \% \\\text { Net Income } & \$ 150,000 \\\text { Residual Income } & \$ 30,000\end{array}$$ Based on this information,the division's investment amount was:

• A) $250,000.
• B) $1,000,000.
• C) $1,500,000.
• D) $1,250,000.

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Definitions:

2/10 Net 30

A common payment term indicating that a buyer can take a 2% discount on the invoice price if payment is made within 10 days; otherwise, the net (full) amount is due within 30 days.

Trade Discount

A reduction in the listed price of goods or services provided by the seller to those in the same trade or industry.

Retail List Price

The manufacturer's suggested retail price for a product, which is often higher than the actual selling price in stores.

Best-Selling Grass Seed

A type of grass seed that has achieved high sales volumes and popularity due to its quality, resilience, or suitability for various climates or soils.