$\begin{array}{l}
\text { The following selected data pertain to Beck Co.'s Beam Division for last year: }\
\begin{array} { |l | r | }
\hline \text { Sales } & \$ 400,000 \
\hline \text { Variable Expenses } & \$ 100,000 \
\hline \text { Traceable Fixed Expenses } & \$ 250,000 \
\hline \text { Average Operating Assets } & \$ 200,000 \
\hline \text { Minimum Required Rate of Return } & 20 \% \
\hline
\end{array}
\end{array}$
-What was the return on investment?
A) 12.5%.
B) 20.0%.
C) 25.0%.
D) 40.0%.

Question

$\begin{array}{l}
\text { The following selected data pertain to Beck Co.'s Beam Division for last year: }\
\begin{array} { |l | r | } 
\hline \text { Sales } & \$ 400,000 \
\hline \text { Variable Expenses } & \$ 100,000 \
\hline \text { Traceable Fixed Expenses } & \$ 250,000 \
\hline \text { Average Operating Assets } & \$ 200,000 \
\hline \text { Minimum Required Rate of Return } & 20 \% \
\hline
\end{array}
\end{array}$
-What was the return on investment?
A) 12.5%.
B) 20.0%.
C) 25.0%.
D) 40.0%.

Quizplus · Accepted Answer

Return on Investment (ROI) is calculated as Net Operating Income divided by Average Operating Assets. Net Operating Income is Sales minus Variable Expenses and Traceable Fixed Expenses, which is $400,000 - $100,000 - $250,000 = $50,000. ROI = $50,000 / $200,000 = 0.25 or 25.0%.

-What Was the Return on Investment? A) 12

-What Was the Return on Investment?
A) 12