Figure 14-5

-Figure 14-5 above shows the results of a spreadsheet simulation to select a price to achieve a target return on investment (ROI).What is the ROI for Scenario A?

Question

Figure 14-5
 
-Figure 14-5 above shows the results of a spreadsheet simulation to select a price to achieve a target return on investment (ROI).What is the ROI for Scenario A?

Quizplus · Accepted Answer

Target return-on-investment pricing is used to set prices to achieve a particular return on investment.ROI = Net profit ÷ Investment.ROI = $1,000 ÷ $20,000,or ROI = 5%.

Figure 14-5 -Figure 14-5 Above Shows the Results of a Spreadsheet Simulation