Aiden's operating income was $100,000 and its ROI was 20%. What are Aiden's average operating assets?

Question

Quizplus · Accepted Answer

ROI (Return on Investment) is calculated as Operating Income divided by Average Operating Assets. Given that ROI is 20% (or 0.20) and Operating Income is $100,000, we can set up the equation: $100,000 / Average Operating Assets = 0.20. Solving for Average Operating Assets gives $100,000 / 0.20 = $500,000.

Aiden's Operating Income Was $100,000 and Its ROI Was 20