Express Productions provides the following information.
$$\begin{array} { l r }
\text { Sales } & \$ 1370000 \
\text { Operating profit } & 150000 \
\text { Average operating assets } & 1200000 \
\text { Shareholders' equity } & 1000000 \
\text { Minimum required rate of return } & 6 \%
\end{array}$$
Calculate the return on investment.

Question

Express Productions provides the following information.
$$\begin{array} { l r } 
\text { Sales } & \$ 1370000 \
\text { Operating profit } & 150000 \
\text { Average operating assets } & 1200000 \
\text { Shareholders' equity } & 1000000 \
\text { Minimum required rate of return } & 6 \%
\end{array}$$
Calculate the return on investment.

Quizplus · Accepted Answer

Return on Investment (ROI) is calculated as Operating Profit / Average Operating Assets. Thus, ROI = $150,000 / $1,200,000 = 12.5%.

Express Productions Provides the Following Information Calculate the Return on Investment