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marin [14]
3 years ago
8

Cabell Products is a division of a major corporation. Last year the division had total sales of $25,320,000, net operating incom

e of $1,924,320, and average operating assets of $6,000,000. The company's minimum required rate of return is 10%. The division's return on investment (ROI) is closest to:
a. 135.5%
b. 6.1%
c. 32.1%
d. 2.4%
Business
1 answer:
aalyn [17]3 years ago
3 0

Answer:

ROI = Net operating income        x 100

         Average operating assets

ROI = $1,924,320   x 100

         $6,000,000

ROI = 32.1%

The correct answer is C

Explanation:

ROI is the ratio of net operating income to average operating assets multiplied by 100.

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