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Custom Shoes Co -What Is the Desired ROI Per Pair of Shoes?
A)

Question 45

Multiple Choice

Use the following information for questions
Custom Shoes Co. has gathered the following information concerning one model of shoe:  Variable manufacturing costs $40,000 Variable selling and administrative costs $20,000 Fixed manufacturing costs $160,000 Fixed selling and administrative costs $120,000 Investment $1,700,000 ROl 30% Planned production and sales 5,000 pairs \begin{array}{ll}\text { Variable manufacturing costs } & \$ 40,000 \\\text { Variable selling and administrative costs } & \$ 20,000 \\\text { Fixed manufacturing costs } & \$ 160,000 \\\text { Fixed selling and administrative costs } & \$ 120,000 \\\text { Investment } & \$ 1,700,000 \\\text { ROl } & 30 \% \\\text { Planned production and sales } & 5,000 \text { pairs }\end{array}
-What is the desired ROI per pair of shoes?


A) $68
B) $168
C) $102
D) $170

Correct Answer:

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