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Andrea Kris is opening a small flower shop that will focus primarily on delivery, but will provide a ...

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Andrea Kris is opening a small flower shop that will focus primarily on delivery, but will provide a ...

Andrea Kris is opening a small flower shop that will focus primarily on delivery, but will provide a small showroom for walk-in customers. A local florist is retiring and selling her small flower shop to Andrea for $162,500. The shop has a remaining life of 20 years. Andrea expects to have revenues of $81,250 per year and pay approximately 60% of revenues in operating costs. What is the accounting rate of return for Andrea's flower shop?

▸ 20%

▸ 15%

▸ 25%

▸ 45%

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Managerial Accounting

Edition: 4^th

Author: Davis

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supersour Author

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Smart ... Thanks!

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