The Following Information Pertains to Bishop Concrete The Company's Imputed Interest Rate Is 8

question 74

Multiple Choice

The following information pertains to Bishop Concrete: $$\begin{array} { l r } \text { Sales revenue } & \$ 1,500,000 \\\text { Gross margin } & 600,000 \\\text { Income } & 90,000 \\\text { Invested capital } & 450,000\end{array}$$ The company's imputed interest rate is 8%.
The ROI is:

• A) 6%.
• B) 15%.
• C) 20%.
• D) 30%.
• E) 40%.

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Definitions:

Cost-Benefit Analysis

A comparison of the costs and benefits of each potential course of action.

Lack-Of-Participation Error

Failure to involve in a decision the persons whose support is needed to implement it.

Classical Decision Model

A theory suggesting decision-making is a rational process, where choices are made logically and with full information.

Complete Information

A situation where all participants have access to all relevant information needed to make informed decisions without any hidden or missing data.