CS Company has a profit margin of 11%. Sales are $320,000, net operating income is $35,200, and average operating assets are $128,000. What is the company's return on investment (ROI)?
A)2.5
B)11%
C)27.5%
D)0.40

Question

Quizplus · Accepted Answer

ROI = Net Operating Income / Average Operating Assets

ROI = ($35,200 / $128,000) x 100

ROI = 27.5%

Therefore, the best choice is C, which correctly identifies the ROI as 27.5%. Other choices are incorrect as they either give the wrong answer or fail to answer the question.

CS Company Has a Profit Margin of 11