Division A of Mocha Company has sales of $155,000, cost of goods sold of $83,000, operating expenses of $43,000, and invested assets of $150,000. What is the rate of return on investment for Division A?
A) 19.3%
B) 48.0%
C) 18.7%
D) 5.47%

Question

Quizplus · Accepted Answer

The rate of return on investment (ROI) is calculated as (Net Income / Invested Assets) * 100. Net Income = Sales - Cost of Goods Sold - Operating Expenses = $155,000 - $83,000 - $43,000 = $29,000. ROI = ($29,000 / $150,000) * 100 = 19.3%.

Division a of Mocha Company Has Sales of $155,000, Cost