Joseph Company has an investment in assets of $450,000,operating income that is 10% of sales,and an ROI of 18%.From this information the amount of operating income would be:
A) $81,000.
B) $45,000.
C) $2,500,000.
D) Impossible to determine from the information given.

Question

Quizplus · Accepted Answer

The ROI (Return on Investment) is calculated as Operating Income divided by Investment in Assets. Given ROI is 18%, and Investment in Assets is $450,000, Operating Income = 18% of $450,000 = $81,000.

Joseph Company Has an Investment in Assets of $450,000,operating Income