Question

Marigold Corp.had average operating assets of $4400000 and sales of $2200000 in 2016. If the controllable margin was $440000, the ROI was_________.

Answer 1

ROI = Net income x 100

Average operating assets

ROI = $440,000 x 100

$4,400,000

ROI = 10%

Step-by-step explanation:

ROI is the ratio of net income to average operating assets multiplied by 100. Controlling margin refers to net income. ROI measures rate of return on invested capital.