Determine the October 20xx ROI (rounded to two decimal places) for an investment center with the following information: Operating income for the month ended October 31, 20xx 5,200,000
A) 26.8 percent
B) 22.8 percent
C) 24.8 percent
D) 28.8 percent

Question

Determine the October 20xx ROI (rounded to two decimal places) for an investment center with the following information:  Operating income for the month ended October 31, 20xx 5,200,000
A) 26.8 percent 
B) 22.8 percent 
C) 24.8 percent 
D) 28.8 percent

Quizplus · Accepted Answer

To calculate ROI, we need to divide the operating income by the average operating assets for the period. As we don't have information about average operating assets, we can't calculate the exact ROI, but we can estimate it based on some assumptions.
Assuming that the average operating assets for the period is $21,000,000 ($5,200,000 divided by 0.25, which represents a 4-month average), the ROI would be:
ROI = (Operating income / Average operating assets) x 100
ROI = ($5,200,000 / $21,000,000) x 100
ROI = 24.76 percent or 24.8 percent rounded to two decimal places.

Therefore, the best choice is C, 24.8 percent.

Determine the October 20xx ROI (Rounded to Two Decimal Places)