Answer the following questions using the information below:
TTB Company has invested $1,000,000 in a plant to make vending machines. The target operating income desired from the plant is $150,000 annually. The company plans annual sales of 1,500 vending machines at a selling price of $1,000 each.
-What is the target rate of return on investment for TTB Company?
A) 15.0%
B) 17.6%
C) 11.1%
D) 10.0%

Question

Quizplus · Accepted Answer

The target rate of return on investment is calculated by dividing the target operating income by the investment amount. So, $150,000 / $1,000,000 = 0.15 or 15%.

Answer the Following Questions Using the Information Below