Breton Corporation's Longboat division's segment margin as a percentage of net sales is 12% for the current reporting period.The division has net sales revenue of $2,500,000.Operating assets were $800,000 at the beginning of the period and $1,200,000 at the end.What is the division's ROI?
A) 10%
B) 12%
C) 15%
D) 30%

Question

Quizplus · Accepted Answer

Segment Margin x Asset Turnover = ROI
12% x 2.5 = 30%

Breton Corporation's Longboat Division's Segment Margin as a Percentage of Net