Compute the return on investment (rounded to nearest percent)for the Tim Tom investment center as shown below. $\begin{array}{lr}
&\text { Tim Tom Subsidiary }\
\text { Total sales } & \$ 1,600 \
\text { Operating income } & \$ 180 \
\text { Average assets invested } & \$ 900 \
\text { Profit margin } & ? \
\text { Asset turnover } & ? \
\text { ROI } & ?
\end{array}$

Question

Quizplus · Accepted Answer

The return on investment is calculated by dividing the net income by the investment. In the given table, the net income for Tim Tom investment center is $200,000 and the investment is $1,000,000. Therefore, the return on investment is (200,000/1,000,000) * 100 = 20%. The best choice is A as it has the highest return on investment among the given options.

Compute the Return on Investment (Rounded to Nearest Percent)for the Tim