The Nacho Division of the Tex-Mex Company Has a Return

question 100

Multiple Choice

The Nacho Division of the Tex-Mex Company has a return on investment (ROI) of 12%, sales of $200,000, and an asset turnover of 2.0. What was Nacho's operating income?

• A) $6,000.
• B) $12,000.
• C) $24,000.
• D) $48,000.

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Definitions:

Exam

A formal test of a person's knowledge or proficiency in a subject or skill.

Meat

The flesh of animals as used for food.

Post Hoc

short for 'Post Hoc Ergo Propter Hoc', a logical fallacy where one assumes that since event Y followed event X, event X must have caused event Y.

Fallacy

A reasoning error that leads to a flawed argument.