Using the information provided by Tasco Sales, calculate the return on investment.
Sales $1 900 000
Operating profit 30 000
Average operating assets 600 000
Shareholders' equity 50 000
Minimum required rate of return 10%

Question

Quizplus · Accepted Answer

Return on Investment (ROI) is calculated as Operating Profit / Average Operating Assets. Therefore, ROI = $30,000 / $600,000 = 0.05 or 5%.

Using the Information Provided by Tasco Sales, Calculate the Return