Question

Vaughn Manufacturing reported operating data for its Sandtrap division for the year. Vaughn requires its return to be 9%. Sales $1500000 Controllable margin 220000 Total average assets 2200000 Fixed costs 60000 How much is ROI for the year?

Answer 1

ROI for the year will be equal to 10 %

Step-by-step explanation:

We have given to total sales = $1500000

Controllable margin = $220000

Total average assets = $2200000

And fixed cost = $60000

We have to find the ROI of the year

ROI is given by

`ROI=(controllable\ margin)/(average\ assets)=(220000)/(2200000)=0.1` = 10 %

So ROI will be equal to 10 %