If Division Q's income from operations was $60,000 on invested assets of $400,000,the rate of return on investment is 15%.

Question

Quizplus · Accepted Answer

To calculate the rate of return on investment, we divide income from operations by invested assets and multiply by 100:

Rate of return = (income from operations / invested assets) x 100%

= ($60,000 / $400,000) x 100%

= 0.15 x 100%

= 15%

Therefore, the statement is true.

If Division Q's Income from Operations Was $60,000 on Invested