Question

Two investment centers at Marshman Corporation have the following current-year income and asset data: Investment Center A Investment Center B Investment center income $ 440,000 $ 578,100 Investment center average invested assets $ 2,500,000 $ 2,050,000 The return on investment (ROI) for Investment Center B is: Multiple Choice 354.6% 22.4% 30.7% 40.7% 28.2%

Answer 1

28.2%

Step-by-step explanation:

The computation of the return on investment for investment center B is shown below:

= Investment center income ÷ Investment center average invested assets

= $578,100 ÷ $2,050,000

= 28.2%

We simply divide the investment center income by the investment center average invested assets so that the correct return on investment could arrive