ATT Inc. sells a cordless phone for $50 per unit. The unit material cost is $ 10 and unit labor cost is $ 15. The annual manufacturing overheads are $ 1 million and promotion and advertising costs are $500,000. The product line has a $ 6 million investment and the expected return on its investment is 10%. What is #RLS for the company? 1) 4,286 2) 42,000 3) 60,000 4) 84,000 5) 90,000
ATT Inc. sells a cordless phone for $50 per unit. The unit material cost is $ 10 and unit labor cost is $ 15. The annual manufacturing overheads are $ 1 million and promotion and advertising costs are $500,000. The product line has a $ 6 million investment and the expected return on its investment is 10%. What is #RLS for the company? 1) 4,286 2) 42,000 3) 60,000 4) 84,000 5) 90,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Give typing answer with explanation and conclusion
Transcribed Image Text:ATT Inc. sells a cordless phone for $ 50 per unit. The unit material cost is $ 10 and
unit labor cost is $15. The annual manufacturing overheads are $ 1 million and
promotion and advertising costs are $500,000. The product line has a $ 6 million
investment and the expected return on its investment is 10%. What is #RLS for the
company?
1) 4,286
2) 42,000
3) 60,000
4) 84,000
5) 90,000
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