Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last year (in thousands). Management's target rate of return is 15% and the weighted average cost of capital is 5%. Its effective tax rate is 30%. Sales $ 8 comma 000 comma 000 Operating income 2 comma 000 comma 000 Total assets 4 comma 000 comma 000 Current liabilities 800 comma 000 What is the division's Return on Investment (ROI)? A. 200.00% B. 20.00% C. 50.00% D. 25.00%

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.