Joseph Company has an investment in assets of $1,003,000, operating income that is 10% of sales, and an ROI of 17%. From this information the amount of operating income would be:
A) $170,510.
B) $270,510.
C) $185,510.
D) Impossible to determine from the information given.

Question

Quizplus · Accepted Answer

The ROI (Return on Investment) is calculated as Operating Income / Investment in Assets. Given ROI is 17% and Investment in Assets is $1,003,000, Operating Income = 0.17 * $1,003,000 = $170,510.

Joseph Company Has an Investment in Assets of $1,003,000, Operating