Answer:
return on investment = 60.50 %
Explanation:
given data
contribution margin = 18%
Sales = $447,000
net operating income = $80,460
average operating assets = $133,000
to find out
company's return on investment (ROI)
solution
we know that return on investment formula that is express as
return on investment = [tex]\frac{net \ operating \ income}{average \ operating \ assets}[/tex] .........................1
put here value we get
return on investment = [tex]\frac{$80,460}{$133,000}[/tex]
return on investment = 0.604962
return on investment = 60.50 %
