Question

Mechforce Manufacturing's net income was $420,000 on sales of $14 million. Average assets for the year were $10 million. ROI for the year was: Multiple Choice a. 4.2% b. 3.0% c. 1.8 d. 1.4

Answer 1

The ROI for Mechforce Manufacturing for the year was 4.2%.

Step-by-step explanation:

The Return on Investment (ROI) for Mechforce Manufacturing can be calculated using the formula:

ROI = Net Income / Average Assets

Plugging in the given values, we have: ROI = $420,000 / $10,000,000

Calculating this, we find that the ROI for the year is 4.2%.

Answer 2

The ROI for Mechforce Manufacturing for the year was 4.2%

Step-by-step explanation:

The ROI for Mechforce Manufacturing for the year can be calculated by dividing net income by average assets and multiplying by 100. The formula for ROI is: ROI = (Net Income / Average Assets) x 100. Given that the net income is $420,000 and the average assets are $10 million, we can calculate the ROI as follows:

ROI = (420,000 / 10,000,000) x 100 = 4.2%

Therefore, the ROI for the year was 4.2% (option a).