Question

BR Company has a contribution margin of 18%. Sales are $447,000, net operating income is $80,460, and average operating assets are $133,000. What is the company's return on investment (ROI)?

Answer 1

Answer:

return on investment = 60.50 %

Explanation:

given data

contribution margin = 18%

Sales = $447,000

net operating income = $80,460

average operating assets = $133,000

to find out

company's return on investment (ROI)

solution

we know that return on investment formula that is express as

return on investment = $\frac{net \ operating \ income}{average \ operating \ assets}$    .........................1

put here value we get

return on investment = $\frac{ 80,460}{ 133,000}$

return on investment = 0.604962

return on investment = 60.50 %