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Question 1: Health Worriers manufactures and sells speed bikes. In 2019, it reported the following: Number of bikes produced and sold 2,000 bikes. Investment $2,000,000, Markup percentage on full cost 20%, Rate of return on investment 10%, Variable cost per unit $300, The selling price per unit was
Option a. $650
Option b. $450
Option c. $500
Option d. $600
Compare the two divisions in terms of return on investment and residual income. In the past year, which division has created the most wealth for McIntyre share holders?
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