Huang Company reported the following information for the current year: $\begin{array}{lr}
\text { Sales } & \$ 870,000 \
\text { Average operating assets } & \$ 570,000\
\text { Margin }&10\%
\end{array}$ The company's return on investment was: (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
A) 10.00%.
B) 13.55%.
C) 15.26%.
D) Cannot be ascertained from the information provided.

Question

Quizplus · Accepted Answer

Return on Investment (ROI) is calculated as Margin multiplied by Asset Turnover. Margin is given as 10%, and Asset Turnover is Sales divided by Average Operating Assets, which is $870,000 / $570,000 = 1.5263. Therefore, ROI = 10% * 1.5263 = 15.26%.