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QUESTION

The following data pertains to AAA division of JJJ Company.

The following data pertains to AAA division of JJJ Company.Selling price per unit$15Variable cost per unit$5Total fixed costs$100,000Total investment of AAA division$200,000What is the return on investment (ROI) assuming that the                                       sales of AAA division in units is12,500

1.0%

2.8%

3.between 10% and 12%

4.12.5%

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