Reference no: EM132572075

The following data was provided by the Wichita Company for 2017:

Sales Revenue: $1,000,000

Cost of Goods Sold: $650,000

Operating Expense: $300,000

Invested Capital: $500,000

Required:

Question 1: If the sales, Cost of Goods Sold, and invested capital remain the same, to what level would operating expenses have to be REDUCED in 2017 to achieve a 15% return on investment?

Group of answer choices

Option 1: $50,000

Option 2: $70,000

Option 3: $60,000

Option 4: $80,000

Option 5: None of the answers are correct