Answer:
Controllable margin and average operating assets.
Step-by-step explanation:
Return on investment is defined as the gain or loss on a particular investment. It measures the amount of gain or loss generated by investing in a particular type of asset. It is generally used to take the financial decisions (Personal) by comparing the profitability of various companies.
For example:
Controllable margin = $360,000
Average operating assets = $3,000,000
Therefore, the return on investment is calculated as follows:
= Controllable margin ÷ Average operating assets
= $360,000 ÷ $3,000,000
= 0.12 or 12%