Vance Inc. requires all of its divisions to maintain a return on investment (ROI) of at least 45%. The manager of one of the divisions expects the division's net operating income to be $400,000 and its sales to be $2,000,000.
Required: Calculate the division's required average operating assets in order to achieve the minimum ROI.

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The Answer of Vance Inc. requires all of its divisions to maintain a return on investment (ROI) of at least 45%. The manager of one of the divisions expects the division's net operating income to be $400,000 and its sales to be $2,000,000.
Required: Calculate the division's required average operating assets in order to achieve the minimum ROI.

Vance Inc Requires All of Its Divisions to Maintain a Return