Question

Jaymes corporation produces high-performance rotors. it expects to produce 69,000 rotors in the coming year. it has invested $11,040,000 to produce rotors. the company has a required return on investment of 20%. what is its roi per unit?

Answer 1

The roi per unit is $ 32

Step-by-step explanation:

In order to calcuate the roi per unit, first we have to calcuate the income.

Income= Investment×return on investment

=$11,040,000×20%

=$2,208,000

After having calculated the income we are then in conditions to calculate the roi per unit.

roi per unit= Income ÷ units produced

=$2,208,000÷ 69,000

= $ 32 per unit.