Multiple Choice Question 45 Bonita Industries has gathered the following informa

Question

Multiple Choice Question 45 Bonita Industries has gathered the following information concerning one model of shoe: Variable manufacturing costs Variable selling and administrative costs Fixed manufacturing costs Fixed selling and administrative costs Investment ROI Planned production and sales $48000 $22000 $160000 $120000 $1700000 10% 5000 pairs What is the desired ROI per pair of shoes? O $168 O $70 O $34 o $172 Question Attemm com edu g en shared/assignment test/aglist uniid=asnmt 192796 1aN 1003

Explanation / Answer

1)correct option is "C" -34

Return on investment : 1700000*.10 =170000

ROI per paid of shoes : 170000/5000

               = $34

2)Material loading charge =[ estimated purchasing ,handling,storing cost /total cost of material] + Desired profit on material

                     0 + 22

                    22%

correct option is "A"

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