Last year Buchanan Company's divisional operating income was $400,000. The investment for the year was $5,000,000. What is the return on investment?

Name: Last year Buchanan Company's divisional operating income was $400,000. The investment for the year was $5,000,000. What is the return on investment?
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Quizplus · Accepted Answer

The return on investment (ROI) is calculated by dividing the operating income by the investment and then multiplying by 100 to get a percentage. So, ROI = ($400,000 / $5,000,000) * 100 = 8.000%.

Last Year Buchanan Company's Divisional Operating Income Was $400,000