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Division Y of the Mortisen Company produces and sells two products.Each product's operating income and average capital resources are shown below:
Product A: Operating Income $500,000;Average capital $5,000,000.
Product B: Operating Income $350,000;Average capital $4,100,000.
-What is division Y's ROI for product B? (Round your percentage answer to the nearest whole number. )
A)12.0%
B)10.0%
C)9.0%
D)13.0%

Question

Quizplus · Accepted Answer

ROI (Return on Investment) for Product B is calculated as (Operating Income / Average Capital) * 100 = ($350,000 / $4,100,000) * 100 = 8.54%, which rounds to 9%.

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