Question

Sheridan Company recorded operating data for its Cheap division for the year. Sheridan requires its return to be 10%. Sales $2200000 Controllable margin 200000 Total average assets 5000000 Fixed costs 100000 What is the ROI for the year? 11% 6% 44% 4%

Answer 1

ROI of the year will be 4 %

So option (d) will be correct option

Step-by-step explanation:

We have given controllable margin = 200000

And total average assets = 5000000

We have to find the ROI

We know that ROI is given by

`ROI=(Contrlable\ margin)/(total\ average\ asset)=(200000)/(5000000)=0.04` = 4 %

So ROI of the year will be equal to 4 %

So option (d) will be correct answer