Q36   The following results pertain to an investment center.   Sales $ 1,633,700 Variable costs 830,000 Traceable fixed costs 93,000 Average investment 1,030,000 Divisional cost of capital (discount rate) 10%   How much is the return on investment (ROI) for this investment center?   Multiple Choice   78%.   69%.   79%.   13%.   1%.

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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Q36

 

The following results pertain to an investment center.

 

Sales $ 1,633,700
Variable costs 830,000
Traceable fixed costs 93,000
Average investment 1,030,000
Divisional cost of capital (discount rate) 10%

 

How much is the return on investment (ROI) for this investment center?

 

Multiple Choice
  •  

    78%.

  •  

    69%.

  •  

    79%.

  •  

    13%.

  •  

    1%.

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