Division A of Chacha Company has sales of $140,000, cost of goods sold of $83,000, operating expenses of $43,000, and invested assets of $150,000.
-The return on investment (ROI) for Division A is
A)9.3%
B)99.3%
C)74.6%
D)4.6%

Question

Division A of Chacha Company has sales of $140,000, cost of goods sold of $83,000, operating expenses of $43,000, and invested assets of $150,000.​
-The return on investment (ROI) for Division A is
A)9.3%
B)99.3%
C)74.6%
D)4.6%

Quizplus · Accepted Answer

ROI is calculated as (Net Income / Invested Assets) * 100. Net Income for Division A is Sales - Cost of Goods Sold - Operating Expenses = $140,000 - $83,000 - $43,000 = $14,000. Thus, ROI = ($14,000 / $150,000) * 100 = 9.3%.

Division a of Chacha Company Has Sales of $140,000, Cost