Answer the following questions using the information below:
Botany Manufacturers has invested $1 000 000 in a plant to make commercial juicer machines.The target operating profit desired from the plant is $180 000 annually.The company plans annual sales of 7000 juicer machines at a selling price of $200 each.
-What is the target rate of return on investment for Botany Manufacturers?

Question

Quizplus · Accepted Answer

The target rate of return on investment is calculated as the target operating profit divided by the investment amount. Here, it is $180,000 / $1,000,000 = 0.18 or 18%.

Answer the Following Questions Using the Information Below