Question

BR Company has a contribution margin of 18%. Sales are $423,000, net operating income is $76,140, and average operating assets are $131,000. What is the company's return on investment (ROI)

Answer 1

58.12%

Step-by-step explanation:

Return on investment = Net operating income / Average operating assets

Return on investment = $76,140 / $131,000

Return on investment = 0.5812214

Return on investment = 58.12%

So, the company's return on investment (ROI) is 58.12%.