Reference: 12-02
the Following Data Are Available for the South

Multiple Choice

Reference: 12-02
The following data are available for the South Division of Redride Products, Inc. and the single product it makes: $$\begin{array} { | l | l | } \hline \text { Unit selling price } & \$ 20 \\\hline \text { Variable cost per unit } & \$ 12 \\\hline \text { Annual fixed costs } & \$ 280,000 \\\hline \text { Average operating assets } & \$ 1,500,000 \\\hline\end{array}$$
-How many units must the South Division sell each year to have an ROI of 16%

A) 52,000.
B) 240,000.
C) 65,000.
D) 130,000.