Hatfield, Inc

question 146

Multiple Choice

Hatfield, Inc. sells its product for $14.00. Variable costs are $9.00 per unit, and Hatfield has $800,000 in fixed costs. Assume that Hatfield has $1.0 million in total debt and equity and a 40% tax rate. What is Hatfield's ROCE when sales are at 10% above breakeven?

• A)4.8%
• B)1.4%
• C)7.6%
• D)9.1%

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Definitions:

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Consumer Taste

Preferences and desires of consumers regarding products and services, influencing their purchasing behavior and choices.

Technology

Utilizing scientific principles for practical objectives, notably in the industrial realm.

Outward

Often used in economics to refer to an expansion or increase, such as in outward economic growth, indicating increasing production, income, or development.