Target annual operating income is divided with invested capital to calculate

A. target rate of return on investment

B. operating income per unit

C. operating cost per unit

D. cost of goods sold

Answer: Option A

Solution(By Examveda Team)

Target annual operating income is divided with invested capital to calculate target rate of return on investment. A rate of return (RoR) is the net gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.