Compute the return on investment (rounded to nearest percent)for the Tim Tom investment center as shown below. $\begin{array}{lr}
& \text { Tim Tom Subsidiary } \
\text { Total sales } & \$ 1,600 \
\text { Operating income } & \$ 180 \
\text { Average assets invested } & \$ 900 \
\text { Profit margin } & ? \
\text { Asset turnover } & ? \
\text { ROI } & ?
\end{array}$

Question

Compute the return on investment (rounded to nearest percent)for the Tim Tom investment center as shown below. $\begin{array}{lr} 
& \text { Tim Tom Subsidiary } \
\text { Total sales } & \$ 1,600 \
\text { Operating income } & \$ 180 \
\text { Average assets invested } & \$ 900 \
\text { Profit margin } & ? \
\text { Asset turnover } & ? \
\text { ROI } & ?
\end{array}$

Quizplus · Accepted Answer

Return on Investment (ROI) is calculated as (Operating Income / Average Assets Invested) * 100. For Tim Tom, ROI = ($180 / $900) * 100 = 20%.

Compute the Return on Investment (Rounded to Nearest Percent)for the Tim