The state of Ohio has passed a law requiring that every automobile be inspected at least once a year for pollution control.Anson Enterprises is considering entering into this type of business.After extensive studies,Mark Anson has developed the following set of projected annual data on which to make his decision: Anson believes that his company will inspect 100,000 automobiles per year.The company earns an average of 18.75 percent return on its assets.

-The projected cost for inspecting each automobile would be
A)$11.13.
B)$12.03.
C)$12.93.
D)$10.03.

Question

The state of Ohio has passed a law requiring that every automobile be inspected at least once a year for pollution control.Anson Enterprises is considering entering into this type of business.After extensive studies,Mark Anson has developed the following set of projected annual data on which to make his decision:

Anson believes that his company will inspect 100,000 automobiles per year.The company earns an average of 18.75 percent return on its assets.

-The projected cost for inspecting each automobile would be

-The projected cost for inspecting each automobile would be
A)$11.13. 
B)$12.03. 
C)$12.93. 
D)$10.03.

Quizplus · Accepted Answer

The correct choice is $12.03, as it is the projected cost for inspecting each automobile according to the given options.

The State of Ohio Has Passed a Law Requiring That