BR Company has a contribution margin of 9%. Sales are $477,000, net operating income is $42,930, and average operating assets are $134,000. What is the company's return on investment (ROI)?
A) 3.6%
B) 9.0%
C) 32.0%
D) 0.3%

Question

Quizplus · Accepted Answer

The formula for ROI is (Net Operating Income / Average Operating Assets) x 100.
Substituting the given values, we get, ROI = (42,930 / 134,000) x 100 = 32%. Therefore, the correct answer is option C.

BR Company Has a Contribution Margin of 9