Bogey Co. recorded operating data for its Cheap division for the year. Bogey requires its return to be 10%. $\begin{array}{lr}
\text { Sales } & \$ 1,400,000 \
\text { Controllable margin } & 160,000 \
\text { Total average assets } & 4,000,000 \
\text { Fixed costs } & 100,000
\end{array}$ What is the ROI for the year?

Question

Quizplus · Accepted Answer

ROI (Return on Investment) is calculated as (Controllable Margin / Total Average Assets) * 100. Here, it's (160,000 / 4,000,000) * 100 = 4%.

Bogey Co Recorded Operating Data for Its Cheap Division for the the Year