Hamlin Corporation had $220,000 in invested assets, sales of $242,000, income from operations amounting to $70,400, and a desired minimum rate of return of 3%. The rate of return on investment for Hamlin is:
A) 7%
B) 32%
C) 3%
D) 29%

Question

Quizplus · Accepted Answer

The rate of return on investment (ROI) is calculated by dividing the income from operations by the invested assets. Here, $70,400 / $220,000 = 0.32 or 32%.

Hamlin Corporation Had $220,000 in Invested Assets, Sales of $242,000