Refer to Scenario 7

Multiple Choice

Refer to Scenario 7.1 below to answer the questions that follow.
SCENARIO 7.1: You are the owner and only employee of a company that writes computer software that is used by gamblers to collect sports data. Last year you earned a total revenue of $90,000. Your costs for equipment, rent, and supplies were $60,000. To start this business you invested an amount of your own capital that could pay you a return of $40,000 a year.
-Refer to Scenario 7.1. A yearly normal rate of return for your computer software firm would be

A) $20,000.
B) $40,000.
C) $60,000.
D) $100,000.