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kenny6666 [7]
4 years ago
9

Largo Company recorded for the past year sales of $414,400 and average operating assets of $259,000. What is the margin that Lar

go Company needed to earn in order to achieve an ROI of 28.8%?
A. 18.00%
B. 1.60%
C.28.80%
D. 3.47%
Business
1 answer:
lara [203]4 years ago
7 0

Answer:

A. 18.00%

Explanation:

In this question, first we have to apply the return on investment formula so that the net income value could find out which is shown below:

Return on investment = Net Income ÷ Average Operating Assets  × 100

28.8% = Net Income  ÷ $259,000

So, the Net income would be

= $74,592

Now the margin would be

= Net income ÷ Sales × 100

= $74,592 ÷ $414,400 × 100

= 18%

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