Flash Sales provided the following information. Calculate the return on investment.
$$\begin{array} { l r }
\text { Sales } & \$ 800000 \
\text { Operating profit } & \$ 46800 \
\text { Average operating assets } & \$ 520000 \
\text { Shareholders' equity } & \$ 50000 \
\text { Minimum required rate of return } & 12 \%
\end{array}$$

Question

Flash Sales provided the following information. Calculate the return on investment.
$$\begin{array} { l r } 
\text { Sales } & \$ 800000 \
\text { Operating profit } & \$ 46800 \
\text { Average operating assets } & \$ 520000 \
\text { Shareholders' equity } & \$ 50000 \
\text { Minimum required rate of return } & 12 \%
\end{array}$$

Quizplus · Accepted Answer

The return on investment (ROI) is calculated by dividing the operating profit by the average operating assets. Thus, ROI = $46800 / $520000 = 0.09 or 9%.

Flash Sales Provided the Following Information A) 4% B) 6% C) 9% D) 12

Flash Sales Provided the Following Information A) 4%
B) 6%
C) 9%
D) 12