Register
Assume the Residential Division of KappyKappy Faucets had the following results last year: Net sales $6,360,000 Operating income 636,000 Average total assets 5,300,000 Management's target rate of return
38.5k views
4 votes
Assume the Residential Division of KappyKappy Faucets had the following results last year:

Net sales $6,360,000
Operating income 636,000
Average total assets 5,300,000
Management's target rate of return 16%
What is the division's return on investment?

User Baran
by
5.8k points

1 Answer

4 votes

Answer:

12%

Step-by-step explanation:

Calculation for the division's return on investment

Using this formula

Return On Investment = Operating income /Average total assets

Let plug in the formula

Return on investment= $636,000/$5,300,000

Return on investment= 0.12*100

Return on investment=12%

Therefore the division's return on investment will be $12%

User Beesknees
by
5.0k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.9m questions

7.7m answers

Other Questions

_____ reminds customers and clients that they made a good choice in selecting a company with which to do business, or it reminds them of the good qualities of their purchase.​
Demonstrate how binomial nomenclature is related to classification systems by identifying the genus name and the specific name of the domestic cat felis catus
On august 1 the darius co. purchased a photocopy machine for $8,000. the estimated annual depreciation on the machine is $1,680. if the company prepares annual financial statements on december 31, the
When president obama was elected, the u.s. economy was in trouble, and has slid into a recession. consumer spending was low and getting worse. in an effort to stop the decline, president obama proposed
In a gallup poll of 1059 randomly selected adults, 39% answered "yes" when asked "do you have a gun in your home?"
Link Copied!