Last Year the Uptown Division of Gorcen Enterprises Had Sales

question 95

Multiple Choice

Last year the Uptown Division of Gorcen Enterprises had sales of $300,000 and a net operating income of $24,000. The average operating assets at Uptown last year amounted to $120,000.
-Last year at Uptown the return on investment was:

• A)8%
• B)12%
• C)20%
• D)40%

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Definitions:

Optimum

The most favorable condition or level for growth, reproduction, or success.

Substitutes

Two goods for which an increase in the price of one leads to an increase in the demand for the other.

Complements

Two goods for which an increase in the price of one leads to a decrease in the demand for the other.

Budget Constraints

A representation of the trade-offs between different goods and services that a consumer can afford with their limited income.