Division A of Chacha Company has sales of $140,000, cost of goods sold of $83,000, operating expenses of $43,000, and invested assets of $150,000. What is the rate of return on investment for Division A?
A) 9.3%
B) 99.3%
C) 74.6%
D) 4.6%

Question

Quizplus · Accepted Answer

The rate of return on investment (ROI) is calculated as (Net Income / Invested Assets) * 100. Net Income = Sales - Cost of Goods Sold - Operating Expenses = $140,000 - $83,000 - $43,000 = $14,000. ROI = ($14,000 / $150,000) * 100 = 9.3%.

Division a of Chacha Company Has Sales of $140,000, Cost