Crimpson Company has invested $2,100,000 in a plant to make commercial juicer machines. The target operating income desired from the plant is $305,000 annually. The company plans annual sales of 7400 juicer machines at a selling price of $600 each.
What is the target rate of return on investment for Crimpson Company?
◦ 6.9%
◦ 7.4%
◦ 14.5%
◦ 12.5%