Bob's Bait Shop wants to calculate a division's return on investment.The profit from the division equals $10,000.The equity found in the division equals $ 50,000.This division has assets equal to $35,000.Calculate the return the division is generating.
A)143 %
B)70 %
C)29 %
D)20 %

Question

Quizplus · Accepted Answer

Return on investment can be calculated as profit divided by equity or profit divided by assets. In this case, ROI = $10,000 / $35,000 = 0.29, which equals 29%. Therefore, the best choice is C.

Bob's Bait Shop Wants to Calculate a Division's Return on Investment.The