Answer:
45%
Explanation:
Given that,
Sales = $4,500,000
Invested assets = $2,000,000
Operating expenses = $3,600,000
Minimum rate of return = 7%
Operating profit of the company:
= Sales - Operating expenses
= $4,500,000 - $3,600,000
= $900,000
Therefore, the rate of return on investment is as follows:
= Net operating income ÷ Invested assets
= $900,000 ÷ $2,000,000
= 45%
