Mason Corporation had $650,000 in invested assets, sales of $700,000, operating income amounting to $99,000, and a desired minimum return on investment of 15%.
-Marshall Corporation had $220,000 in invested assets, sales of $242,000, operating income of $66,000, and a desired minimum return on investment of 3%. The return on investment for Marshall Corporation is
A)9.1%
B)30%
C)3.0%
D)27.3%

Question

Quizplus · Accepted Answer

The return on investment (ROI) is calculated as (Operating Income / Invested Assets) * 100. For Marshall Corporation, ROI = ($66,000 / $220,000) * 100 = 30%.

Mason Corporation Had $650,000 in Invested Assets, Sales of $700,000