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Sandra Clothing Company Has Invested $48,000,000 in Its Business

Question 153

Multiple Choice

Sandra Clothing Company has invested $48,000,000 in its business.The target rate of return for the company is 15%.It has long-term assets of $20,000,000.Cost of debt for the company is 12%.It expects to sell 8,000 units in the upcoming year.What will be the target operating income per unit for Sandra Clothing Company?


A) $300
B) $375
C) $720
D) $900

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