O A. 20 % O B. 25 % OC. 35 % O D. 30 % O E. 15 % Click to select your answer.

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
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Variable
Fixed
140,000
107,500
Selling and administrative:
Variable
Fixed
60,000
Total costs
80,000
Pershing has a target profit of $150,000.
$705,000
If total invested capital is $1,000,000, what is the company's target rate of return on investment?
O A. 20 %
O B. 25 %
O C. 35 %
O D. 30 %
O E. 15 %
Click to select your answer.
Transcribed Image Text:Variable Fixed 140,000 107,500 Selling and administrative: Variable Fixed 60,000 Total costs 80,000 Pershing has a target profit of $150,000. $705,000 If total invested capital is $1,000,000, what is the company's target rate of return on investment? O A. 20 % O B. 25 % O C. 35 % O D. 30 % O E. 15 % Click to select your answer.
Pershing Company budgeted the following costs for the production of its one and only product, blades, for the next fiscal year:
Direct materials
$187,500
130,000
Direct labour
Factory overhead;
Variable
140,000
Fixed
107,500
Selling and administrative:
Variable
60,000
80,000
$705,000
Fixed
Total costs
Pershing has a target profit of $150,000.
Transcribed Image Text:Pershing Company budgeted the following costs for the production of its one and only product, blades, for the next fiscal year: Direct materials $187,500 130,000 Direct labour Factory overhead; Variable 140,000 Fixed 107,500 Selling and administrative: Variable 60,000 80,000 $705,000 Fixed Total costs Pershing has a target profit of $150,000.
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