Question

Sales $1,406,537 Operating Income $102,299 Total Assets (investment) $541,233 Target Rate of Return (Cost of Capital) 10% What is return on investment? Input your answer to 1 decimal place. For example if you calculate .1892 enter 18.9.

Answer 1

18.9

Step-by-step explanation:

ROI = Net Profit / Total Investment *100

ROI = ($102,299/$541,233)*100

ROI = 18.9

Answer 2

18.90%

Step-by-step explanation:

The formula to compute the return on investment is shown below:

= Operating income ÷ Total Assets (investment)

= $102,299 ÷ $541,233

= 18.90%

It shows a relationship between the operating income and the total assets i.e investment so that the accurate return on investment can be computed

All other information which is given is not relevant. Hence, ignored it