How many valves must the valve division sell nest year

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Question - The valve division of Endix produces a small valve that is used by various companies as a component part in their products. Next year the Valve Division is expected to generate a ROI of 14%. the Valve Division has average operating assets of $700,000. The valves are sold for $5 each. Variable costs are $3 per valve, and fixed costs total $462,000 per year. The division has a capacity of 300,000 per year. How many valves must the valve division sell nest year to generate the desired ROI?

Reference no: EM132793052

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