Question

A company has the following information Operating income $600,000 Sales $900,000 Asset turnover 55% Assets invested...

A company has the following information
Operating income $600,000
Sales $900,000
Asset turnover 55%
Assets invested $50,000

Compute ROI
  • A. 55%
  • B. 18%
  • C. 12%
  • D. 22%
Business   Accounting   
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Answer #1
Answer:
Return on Investment (ROI )
                = Operating Income / Assets Invested
                =      $ 600,000 / $ 50,000
                =      12%
Option (C ) is Correct
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