Respuesta :
Answer:
32.03%
Explanation:
Data provided as per the question
Net operating income = $42,930
Average operating assets = $134,000
The computation of return on investment (ROI) is shown below:-
Return on investment =net operating income ÷ average operating assets
$42,930 ÷ $134,000
= 32.03%
Therefore for computing the return on investment we simply divide average operating assets by net operating income.
Answer:
32.03%
Explanation:
Given that,
Contribution margin = 9%
Sales = $477,000
Net operating income = $42,930
Average operating assets = $134,000
The company's return on investment is determined by dividing the net operating income of this company by the average operating assets.
Return on investment:
= Net operating income ÷ Average operating assets × 100
= ($42,930 ÷ $134,000) × 100
= 32.03%
Therefore, the company's return on investment (ROI) is 32.03%.
