The Martin Company reported net income of $15,000 on gross sales of $80,000. The company has average total assets of $135,000, of which $102,000 is property, plant, and equipment. What is the company's return on investment? (Round your final answer to 1 decimal place.)
A) 18.8%
B) 11.1%
C) 14.7%
D) 12.5%

Question

Quizplus · Accepted Answer

Return on Investment (ROI) is calculated as Net Income divided by Average Total Assets. For the Martin Company, ROI = $15,000 / $135,000 = 0.111 or 11.1%.

The Martin Company Reported Net Income of $15,000 on Gross