Question

Given the following data: Average Operating Assets $250,000 Total Liabilities $100,000 Sales $600,000 Contribution Margin $150,000 Net Operating Income $30,000 Return on investment (ROI) would be: a. 5%. b. 12%. c. 25%. d. 60%.

Answer 1

Answer:

b. 12%.

Explanation:

The computation of the return on investment is given below:

return on investment is

= net income ÷ avergae total assets

= ($30,000 ÷ $250,000)

= 12%

Hence, the return on investment is 12%

Therefore the option b is correct

And, the same should be considered and relevant