Use the information below to answer the following question(s):
Selected financial data for the Entertainment Division of Magic Enterprises is as follows:

-What is the Entertainment Division's return on investment?
A) 240.00%
B) 48.00%
C) 20.00%
D) 11.11%

Question

Use the information below to answer the following question(s):
Selected financial data for the Entertainment Division of Magic Enterprises is as follows:
 
-What is the Entertainment Division's return on investment?
A) 240.00% 
B) 48.00% 
C) 20.00% 
D) 11.11%

Quizplus · Accepted Answer

Return on investment (ROI) is calculated as follows: 
ROI = (Net income/Total assets) x 100%
Using the given financial data for the Entertainment Division of Magic Enterprises, we can calculate ROI as follows: 
ROI = (40,000/83,333) x 100%
ROI = 48.00% 
Therefore, the correct answer is B.

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