Crimpson Company has invested $2,100,000 in a plant to make commercial juicer machines. The target operating income desired from the plant is $305,000 annually. The company plans annual sales of 7,400 juicer machines at a selling price of $600 each. What is the target rate of return on investment for Crimpson Company? a 14.5% b 12.5% C 6.9 %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Crimpson Company has invested
$2,100,000 in a plant to make commercial
juicer machines. The target operating
income desired from the plant is $305,000
annually. The company plans annual sales
of 7,400 juicer machines at a selling price
of $600 each.
What is the target rate of return on
investment for Crimpson Company?
a 14.5%
b 12.5%
c 6.9 %
Transcribed Image Text:Crimpson Company has invested $2,100,000 in a plant to make commercial juicer machines. The target operating income desired from the plant is $305,000 annually. The company plans annual sales of 7,400 juicer machines at a selling price of $600 each. What is the target rate of return on investment for Crimpson Company? a 14.5% b 12.5% c 6.9 %
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