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The Board Manufacturing Company Reported Investment Capital of $80,000,000 and a 16

Question 45

Multiple Choice

The Board Manufacturing Company reported investment capital of $80,000,000 and a 16% (pretax) target rate of return on the investment of 150,000 units of Product Y.
Required:
Compute the targeted annual operating income and the target operating income per unit of Product Y.


A) $5 operating income;$85.33 operating income per unit
B) $12,000,000 operating income;$85.33 operating income per unit
C) $12,500,000 operating income;$85.33 operating income per unit
D) $12,800,000 operating income;$85.33 operating income per unit
E) $12,850,000 operating income;$85.33 operating income per unit

Correct Answer:

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