Blaser Corporation had $275,000 in invested assets,sales of $330,000,income from operations amounting to $33,000 and a desired minimum rate of return of 7.5%.The rate of return on investment for Blaser Corporation is
A) 8.3%
B) 10%
C) 12%
D) 7.5%

Question

Quizplus · Accepted Answer

The rate of return on investment can be calculated using the formula: 
Rate of Return on Investment = Income from Operations / Invested Assets

Substituting the given values, we get: 
Rate of Return on Investment = 33,000 / 275,000

Rate of Return on Investment = 0.12 or 12%

As the desired minimum rate of return is 7.5%, and the actual rate of return on investment is 12%, Blaser Corporation's return is more than the desired minimum rate, so the best choice is  option C) 12%.

Blaser Corporation Had $275,000 in Invested Assets,sales of $330,000,income from Operations