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Auagaa474 Corporation had sales of $491,300 and average operating assets of $289,000 for the past period. What is the margin that Auagaa474 needed to earn in order to achieve an ROI of 27.2%?
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Auagaa474 Corporation had sales of $491,300 and average operating assets of $289,000 for the past period. What is the margin that Auagaa474 needed to earn in order to achieve an ROI of 27.2%?

User Yann Armelin
by
4.6k points

1 Answer

3 votes

Answer: 16%

Step-by-step explanation:

Margin = Net operating income/ Sales

Net operating income is used in the ROI formula;

ROI = Net operating income/ Average operating assets

27.2% = Net operating income / 289,000

Net operating income = 289,000 * 27.2%

= $78,608

Margin = 78,608/491,300

= 16%

User JMRC
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