If an investment center has a $45,000 controllable margin and $600,000 of sales, what average operating assets are needed to have a return on investment of 10%?
A) $60,000
B) $105,000
C) $450,000
D) $600,000

Question

Quizplus · Accepted Answer

Return on Investment (ROI) is calculated as Controllable Margin divided by Average Operating Assets. To find the average operating assets needed for a 10% ROI, divide the controllable margin ($45,000) by the desired ROI (10%), which equals $450,000.

If an Investment Center Has a $45,000 Controllable Margin and $600,000