Use the information below to answer the following question(s):
Selected financial data for The Plastic Lumber Company's Outdoor Furniture Division is as follows:

-What is The Plastic Lumber Company's Outdoor Furniture Division return on investment?
A) 9.52%
B) 20.00%
C) 40.00%
D) 2000.00%

Question

Use the information below to answer the following question(s):
Selected financial data for The Plastic Lumber Company's Outdoor Furniture Division is as follows:
 
-What is The Plastic Lumber Company's Outdoor Furniture Division return on investment?
A) 9.52% 
B) 20.00% 
C) 40.00% 
D) 2000.00%

Quizplus · Accepted Answer

Return on investment (ROI) = (Net profit / Total assets) x 100
From the given information, we can calculate the ROI for the Outdoor Furniture Division as follows:

ROI = (560,000 / 1,400,000) x 100 = 40%

Therefore, the correct answer is option C, which is 40.00%.

Use the Information Below to Answer the Following Question(s)