Wacker Company has two regional offices.The data for each follows:
$$\begin{array} { l r r }
& \text { Adelaide } & \text { Perth } \
\text { Revenues } & \$ 580000 & \$ 596000 \
\text { Operating assets } & 4800000 & 9000000 \
\text { Net operating profit } & 2016000 & 2400000
\end{array}$$
What is the Adelaide Division's return on investment?
A)0.42
B)0.54
C)0.96
D)4.12

Question

Wacker Company has two regional offices.The data for each follows:
$$\begin{array} { l r r } 
& \text { Adelaide } & \text { Perth } \
\text { Revenues } & \$ 580000 & \$ 596000 \
\text { Operating assets } & 4800000 & 9000000 \
\text { Net operating profit } & 2016000 & 2400000
\end{array}$$
What is the Adelaide Division's return on investment?
A)0.42
B)0.54
C)0.96
D)4.12

Quizplus · Accepted Answer

Return on Investment (ROI) is calculated as Net Operating Profit divided by Operating Assets. For Adelaide, ROI = 2016000 / 4800000 = 0.42.

Wacker Company Has Two Regional Offices What Is the Adelaide Division's Return on Investment? A)0

Wacker Company Has Two Regional Offices What Is the Adelaide Division's Return on Investment?
A)0