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Given the following data:
Average operating assets $720,000
Total liabilities $51,840
Sales $432,000
Contribution margin $250,560
Net operating income $108,000
Return on investment (ROI) would be:
34.8%
25.0%
58.0%
15.0%
Given the following data:
Solution
Introduction:
Return on Investment (ROI) is the measure to determine the returns in terms of percentage a
specific investment or money input provides to the investor.
Solution:
Return on Investment = Profit on Investment / Net Investment * 100
Here,
Profit on Investement = Net operating income = $108,000
Net Investment = Average operating assets = $720,000
Return on Investment = $108,000 / $720,000 * 100 = 15% .
Given the following data-        Average operating assets  $720-000.docx

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Given the following data- Average operating assets $720-000.docx

  • 1. Given the following data: Average operating assets $720,000 Total liabilities $51,840 Sales $432,000 Contribution margin $250,560 Net operating income $108,000 Return on investment (ROI) would be: 34.8% 25.0% 58.0% 15.0% Given the following data: Solution Introduction: Return on Investment (ROI) is the measure to determine the returns in terms of percentage a specific investment or money input provides to the investor. Solution: Return on Investment = Profit on Investment / Net Investment * 100 Here, Profit on Investement = Net operating income = $108,000 Net Investment = Average operating assets = $720,000 Return on Investment = $108,000 / $720,000 * 100 = 15% .