The Pastry Division of Dream Bread has invested capital of $1,300,000.During the past year, the Pastry Division reported sales of $1,200,000 and earned $400,000 of NOPAT.How much return did the Pastry Division generate on each dollar of assets invested in the division?

Question

Quizplus · Accepted Answer

The return on assets (ROA) is calculated by dividing NOPAT by the invested capital. Here, $400,000 / $1,300,000 = 0.3077 or 30.77%.

The Pastry Division of Dream Bread Has Invested Capital of $1,300,000.During