If the Average Invested Capital Is $300 000 and the Target

question 64

Multiple Choice

If the average invested capital is $300 000 and the target return on investment is 20 per cent, what is the target profit?

• A) $50 000
• B) $60 000
• C) $70 000
• D) $75 000

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Definitions:

Economics

The social science concerned with the production, distribution, and consumption of goods and services, and the study of human behavior in allocating resources.

Weekend

The part of the week typically comprising Saturday and Sunday, commonly understood as a time of rest from work.

Commodity 1

Typically refers to a basic good used in commerce that is interchangeable with other goods of the same type; however, the context "1" could suggest a specific focus within a larger category of commodities.

Budget Line

The budget line represents the combination of goods and services that a consumer can purchase with a given budget, considering the prices of those goods and services.