Question

Joseph Company has an investment in assets of $1,224,000, operating income that is 10% of sales, and an ROI of 18%. From this information the amount of operating income would be:

Answer 1

Operating income = $220,320

Step-by-step explanation:

Operating income is the difference between revenue and operating cost.

ROI is the operating income expressed as a percentage of investment in assets.

ROI = operating income/investment

let operating income = y, investment in assets = $1,224,000

18% = y/1,224,000

y= 18%× 1,224,000 = 220320

Operating income = $220,320