Using the Following Information, the Return on Investment Is A) 10%
B) 12%
C) 14%
D) 16

question 46

Multiple Choice

Using the following information, the return on investment is:
$$\begin{array} { l r } \text { Sales } & \$ 80000 \\\text { Operating profit } & \$ 10000 \\\text { Profit margin } & 10 \% \\\text { Equity } & \$ 40000 \\\text { Minimum required rate of return } & 12 \% \\\text { Turnover of assets } & 1.4 \text { times p.a. }\end{array}$$

• A) 10%
• B) 12%
• C) 14%
• D) 16.8%

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Definitions:

Consumer Preferences

The tastes, preferences, and priorities that influence the buying decisions of individuals or households.

Marginal-Utility Schedules

Tables or charts that illustrate the additional satisfaction or utility a consumer receives from consuming an additional unit of a good or service.

Utility Maximization

The economic principle stating individuals aim to achieve the highest satisfaction possible from consumption given their income and prices of goods.

Diminishing Marginal Utility

A principle stating that as more of a good or service is consumed, the additional satisfaction from consuming one more unit decreases.