Reference: 12-08
the Following Selected Data Pertain to Beck Co

Multiple Choice

Reference: 12-08
The following selected data pertain to Beck Co.'s Beam Division for last year: $$\begin{array} { | l | l | } \hline \text { Sales } & \$ 400,000 \\\hline \text { Variable expenses } & \$ 100,000 \\\hline \text { Traceable fixed expenses } & \$ 250,000 \\\hline \text { Average operating assets } & \$ 200,000 \\\hline \text { Minimum required rate of return } & 20 \% \\\hline\end{array}$$
-Largo Company recorded for the past year, sales of $750,000 and had average operatin? assets of $375,000. What is the margin that Largo Company needed to earn in order to achieve an ROI of 15%?

A) 2.00%.
B) 9.99%.
C) 7.50%.
D) 15.00%.