Beak Industries is a division of a major corporation. Last year the division had total sales of $10,600,000, net operating income of $1,070,600, and average operating assets of $4,000,000.
-The division's return on investment (ROI) is closest to:
A) 26.8%
B) 21.1%
C) 2.7%
D) 7.3%

Question

Quizplus · Accepted Answer

Return on Investment (ROI) is calculated as Net Operating Income divided by Average Operating Assets. ROI = $1,070,600 / $4,000,000 = 0.26765, which is approximately 26.8%.

Beak Industries Is a Division of a Major Corporation