Multiple Choice
Answer the following questions using the information below:
Thornton Company has invested $2,000,000 in a plant to make commercial juicer machines. The target operating income desired from the plant is $360,000 annually. The company plans annual sales of 7,000 juicer machines at a selling price of $400 each.
-What is the target rate of return on investment for Thornton Company?
A) 22.0%
B) 18.0%
C) 14.8%
D) 12.9%
Correct Answer:
Verified
Correct Answer:
Verified
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