Your company has invested $1 000 000 in plant and equipment and wants to ensure that it receives a 20 percent ROI on the pricing of its products. This 20 percent translates into $200 000. At a $16.00 cost and a 50 000 expected sales volume, what price must your product "go out the door" at to satisfy this ROI return?
A) $40.00
B) $24.00
C) $22.00
D) $20.00
E) $44.00

Question

Quizplus · Accepted Answer

The Answer of Your company has invested $1 000 000 in plant and equipment and wants to ensure that it receives a 20 percent ROI on the pricing of its products. This 20 percent translates into $200 000. At a $16.00 cost and a 50 000 expected sales volume, what price must your product "go out the door" at to satisfy this ROI return?
A) $40.00
B) $24.00
C) $22.00
D) $20.00
E) $44.00

Your Company Has Invested $1 000 000 in Plant and Equipment