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

Question

Quizplus · Accepted Answer

The return on investment (ROI) is calculated as Operating Income / Average Assets Invested. So, ROI = $180 / $900 = 0.2 or 20%.

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