Fairpoint Products Provided the Following Selected Information About Its Consumer

question 122

Multiple Choice

Fairpoint Products provided the following selected information about its consumer products division for the current year: Based on this information, the division's investment amount was:
$$\begin{array} { | l | l r | } \hline \text { Desired ROI } & & 8 \% \\\hline \text { Net Income } & \$ & 100,000 \\\hline \text { Residual Income } & \$ & 60,000 \\\hline\end{array}$$

• A)$500,000.
• B)$1,250,000.
• C)$750,000.
• D)$2,000,000.

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Definitions:

Federal Trade Commission

A United States government agency that aims to prevent fraudulent, deceptive, and unfair business practices in the marketplace.

Prospective Franchisees

Individuals or entities considering the acquisition of franchise rights to operate a branded business.

Equity Investments

Financial contributions made into companies by purchasing shares in order to gain partial ownership and potentially share in the profits.

Distribution Sources

Channels or intermediaries through which products or services are made available to consumers.