Babak Industries is a division of a major corporation. Last year the division had total sales of $19,560,000, net operating income of $1,877,760, and average operating assets of $6,000,000.
-The division's return on investment (ROI)is closest to:
A) 7.3%
B) 23.8%
C) 31.3%
D) 3.0%

Question

Quizplus · Accepted Answer

ROI = Net operating income ÷ Average operating assets
= $1,877,760 ÷ $6,000,000 = 31.296%

Babak Industries Is a Division of a Major Corporation