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erik [133]
2 years ago
12

ABC Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales $ 17,910,000 Net

operating income $ 1,199,970 Average operating assets $ 4,250,000 The division's return on investment (ROI) is closest to:
Business
1 answer:
bogdanovich [222]2 years ago
6 0

Answer:

28.23%

Explanation:

ABC corporation has a sales of $17,910,000

The net operating income is $1,199,970

The average operating assets is $4,250,000

Therefore, the ROI can be calculated as follows

ROI= Net operating income/Average operating assets

= $1,199,970/$4,250,000

= 0.2823×100

= 28.23%

Hence the division's return on investment is closest to 28.23%

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