Division sell each year to achieve an roi


Question: The following data are available for the Northwestern Division of Dempsey, Inc. and the single product it makes.

Average operating assets      $3,000,000
Annual fixed costs                     560,000
Unit selling price                               40
Variable cost per unit                        24

How many units must the division sell each year to achieve an ROI of 16%?

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Accounting Basics: Division sell each year to achieve an roi
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