The following information is available for the Stanley Company:
$\begin{array} { l }
\text { Sales for year}&\$ 1,000,000\
\text { Average invested capital for year}&\$312,500\
\text {return on investment }&20\%
\end{array}$

What is the operating income?
A) $62,500
B) $100,000
C) $312,500
D) $687,500

Question

The following information is available for the Stanley Company:
$\begin{array} { l  }
 \text { Sales for year}&\$ 1,000,000\
 \text { Average invested capital for year}&\$312,500\
 \text {return on investment }&20\%
\end{array}$

What is the operating income?
A) $62,500
B) $100,000
C) $312,500
D) $687,500

Quizplus · Accepted Answer

Operating income = Return on investment * Average invested capital = 20% * $312,500 = $62,500

The Following Information Is Available for the Stanley Company What Is the Operating Income? A) $62,500 B) $100,000 C)

The Following Information Is Available for the Stanley Company What Is the Operating Income?
A) $62,500
B) $100,000
C)