Question

Aide Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales $17,810,000 Net operating income $765,830 Average operating assets $5,100,000 The division's return on investment (ROI) is closest to: (Round your answer to 2 decimal places.)

Answer 1

The division's return on investment (ROI) is closest to 15.02%

Step-by-step explanation:

Return on investment (ROI) is calculated by using following formula:

ROI = Net income/Total investment

In Aide Industries is a division of a major corporation, total investment equal Average operating assets.

The division has Net operating income of $765,830 and Average operating assets of $5,100,000

ROI = $765,830/$5,100,000 = 15.02%