The Jazz Division of Heights Recording Corporation reported the following results last year: Sales $10,000,000 Operating Income $2,200,000 Total Assets $4,000,000 Current Liabilities $2,500,000 Management's target rate of return is 12% and the weighted average cost of capital is 9%. Its effective tax rate is 32%. Calculate the ROI for the Jazz Division. A. 22% B. 88% C. 12% D. 55% Did the Jazz Division earn or exceed the target rate of return? A. Yes B. No

The ROI for the Jazz Division IS 55%. The right answer is D.

A. Yes

Explanation:

In order to calculate the ROI for the Jazz Division we would have to use the following formula

ROI = Operating income/Total assets

According to the given data:

Operating income=$2,200,000

Total assets = $4,000,000

Therefore, ROI = $2,200,000/$4,000,000

ROI =55%

The ROI for the Jazz Division is 55%

A. Yes. The Jazz Division earn the target rate of return

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.

answer; functional fixedness;