Forward Company had operating income of $75,000, sales of $220,000, and a turnover ratio of 0.55.What is Forward's return on investment (ROI)? (Note: Round answer to two decimal places.)
A) 32.50%
B) 50.60%
C) 18.75%
D) 64.60%
E) Forward's ROI cannot be determined from this information.

Question

Quizplus · Accepted Answer

ROI = Margin ×Turnover = (Operating Income / Sales) × Turnover= ($75,000 / $220,000) × 0.55 = 0.1875 or 18.75%

Forward Company Had Operating Income of $75,000, Sales of $220,000