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15 January, 08:37

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?

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  1. 15 January, 08:51
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    The roi per unit is $ 32

    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.
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