A company using cost-plus pricing has an ROI of 24%, total sales of 20,000 units and a desired ROI per unit of $30. What was the amount of investment?
A) $144,000
B) $2,500,000
C) $456,000
D) $789,475

Question

Quizplus · Accepted Answer

The desired ROI per unit is $30, and with total sales of 20,000 units, the total desired ROI is $30 * 20,000 = $600,000. Given an ROI of 24%, the investment amount can be found by dividing the total desired ROI by the ROI percentage: $600,000 / 0.24 = $2,500,000.

A Company Using Cost-Plus Pricing Has an ROI of 24