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the following data are available for the south division of manhattan products, inc. and the single product it makes: unit selling price $ 37 variable cost per unit $ 29 annual fixed costs $ 297,000 average operating assets $ 1,670,000 how many units must south sell each year to have an roi of 12%?

Respuesta :

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The number of units that the South division of Manhattan products Inc. needs to sell to have an ROI of 12 %, is  62, 175 units

How to find the number of units ?

First, find the ROI:
= 12 % x 1, 670, 000

= $ 200, 400

Then find the contribution margin :

= Selling price per unit - Variable cost

= 37 - 29

= $ 8

The number of units that the South division of Manhattan products Inc. , is :

= (Average fixed costs + ROI ) / Contribution margin

= ( 297, 000 + 200, 400 ) / 8

= 62, 175 units

Find out more on ROI at https://brainly.com/question/11913993

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