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 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. ROI = $15,000 / $135,000 = 0.1111 or 11.1%.

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