-Return on Operating Assets for 2005 Is:
A)7

question 74

Multiple Choice

$$\begin{array} { l r r } \text { Operating assets } & \underline { 2005 } & \underline { 2004 } \\\text { Short-term debt } & 10,500 & \$ 10,000 \\\text { Long-term debt } & 3,5000 & 1,000 \\\text { Minority interest } & 500 & 4,000 \\\text { Common equity } & 5,500 & 5,000 \\& & \\\text { Operating income } & 1,350 & \\\text { Interest expense } & 350 & \\\text { Tax expense } ( 40 \% ) & 400 & \\\text { Minority interest } & 50 & \\\text { Net income } & 550 &\end{array}$$
-Return on operating assets for 2005 is:

• A)7.9%.
• B)7.41%.
• C)8.78%.
• D)8.1%.

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Definitions:

Labor

The human effort (physical or mental) contributed to the production of goods and services.

Overhead

Overhead refers to the indirect costs associated with running a business, such as rent, utilities, and administrative expenses, that are not directly tied to the production of goods or services.

Overhead Costs

Indirect expenses related to the day-to-day running of a business, such as rent, utilities, and office supplies, which are not directly tied to production.

Direct Labor Hours

The cumulative hours employees engaged in manufacturing products or delivering services have worked.