ABC Corporation's North Division generates operating income of $100,000 on $900,000 in sales.The company had $400,000 in assets at the beginning of the year and $450,000 at the end of the year.What is the company's return on investment for the year?
A) 11.1%
B) 23.5%
C) 42.5%
D) 100%

Question

Quizplus · Accepted Answer

$100,000 ÷ [$400,000 + $450,000 ÷2] = 23.5%

ABC Corporation's North Division Generates Operating Income of $100,000 on $900,000