Multiple Choice
Hatfield, Inc. sells its product for $14.00. Variable costs are $9.00 per unit, and Hatfield has $800,000 in fixed costs. Assume that Hatfield has $1.0 million in total debt and equity and a 40% tax rate. What is Hatfield's ROCE when sales are at 10% above breakeven?
A) 4.8%
B) 1.4%
C) 7.6%
D) 9.1%
Correct Answer:
Verified
Correct Answer:
Verified
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