Division D of Saunders Company has sales of $350,000, cost of goods sold of $120,000, operating expenses of $58,000, and invested assets of $150,000.
-The return on investment (ROI) for Division D is
A)153.3%
B)114.7%
C)87.2%
D)233%

Question

Division D of Saunders Company has sales of $350,000, cost of goods sold of $120,000, operating expenses of $58,000, and invested assets of $150,000.​
-The return on investment (ROI) for Division D is
A)153.3%
B)114.7%
C)87.2%
D)233%

Quizplus · Accepted Answer

ROI is calculated as (Net Income / Invested Assets) * 100. Net Income = Sales - Cost of Goods Sold - Operating Expenses = $350,000 - $120,000 - $58,000 = $172,000. ROI = ($172,000 / $150,000) * 100 = 114.7%.

Division D of Saunders Company Has Sales of $350,000, Cost