If an investment center has a $90000 controllable margin and $1200000 of sales what average operating assets are needed to have a return on investment of 10%?
A) $120000
B) $210000
C) $900000
D) $1200000

Question

Quizplus · Accepted Answer

To find the average operating assets needed for a 10% return on investment (ROI), use the formula: ROI = Controllable Margin / Average Operating Assets. Rearranging gives Average Operating Assets = Controllable Margin / ROI. Substituting the given values: $90000 / 0.10 = $900000.

If an Investment Center Has a $90000 Controllable Margin and $1200000