Reference: 12-07
the Following Selected Data Pertain to the Belt

Reference: 12-07
The following selected data pertain to the belt division of Allen Corp. for last year: $$\begin{array} { | l | l | } \hline \text { Sales } & \$ 500,000 \\\hline \text { Average operating assets } & \$ 200,000 \\\hline \text { Net operating income } & \$ 80,000 \\\hline \text { Turnover } & 2.5 \\\hline \text { Minimum required return } & 20 \% \\\hline\end{array}$$
-How much is the return on investment?

A) 15%.
B) 16%.
C) 40%.
D) 20%.