Question

br company has a contribution margin of 18%. sales are $447,000, net operating income is $80,990, and average operating assets are $133,000. what is the company's return on investment (roi)? br company has a contribution margin of 18%. sales are $447,000, net operating income is $80,990, and average operating assets are $133,000. what is the company's return on investment (roi)? 39.1% 56.3% 6.9% 60.9%

Answer 1

The Return on Investment (ROI) for BR Company is 60.9%, calculated by dividing the net operating income by the average operating assets and then multiplying by 100 to get a percentage.

To calculate the Return on Investment (ROI) for BR Company, we use the formula:

ROI = (Net Operating Income / Average Operating Assets) × 100%

Plugging in the given values:

ROI = (($80,990 / $133,000) × 100%)

The calculation gives us:

ROI = (0.609 × 100%) = 60.9%

Hence, the ROI for BR Company is 60.9%%, meaning that for every dollar invested in operating assets, the company generates 60.9 cents in net operating income.