Question

Glven the following data: Average operating assets Total liabilities Sales Contribution margin $688,000 $103,200 $344,000 $196,080 $ 61,92 Net operating income 06 19 Return on investment (RO is: Multiple Choice 90% 570% 28 s%

Answer 1

9%

Step-by-step explanation:

We assume the Net operating income is $61,920

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

Return on investment = Net Operating Income ÷ Average Operating Assets × 100

= $61,920 ÷ $688,000 × 100

= 9%

It shows a relationship between the net operating income and the average operating assets

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