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Anarel [89]
3 years ago
12

Assume the Electronics Division of ABC Electronics had the following data from last year: Net sales $100,000 Operating income $3

0,000 Average total assets 150,000 Management’s target rate of return 15% What is the division’s return on investment?
Business
1 answer:
gregori [183]3 years ago
3 0

Answer:

20%

Explanation:

The computation of the return on investment is shown below:

Return on investment = Operating income ÷ average total assets

where,

Operating income is $30,000

And, the average total assets is $150,000

So, the return on investment is

= $30,000 ÷ $150,000

= 20%

By dividing the operating income with the average total assets we can het the return on investment

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