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Given the following data:
Average operating assets $504,000
Total liabilities $23,520
Sales $168,000
Contribution margin $85,680
Net operating income $45,360
Return on investment (ROI) would be:
A. 27.0%
B. 9.0%
C. 51.0%
D. 17.0%

Respuesta :

ijaz4308

Answer:

B.9.0%

Explanation:

The Return on investment (ROI) of any entity/corporation/firm  can be calculated using the following mentioned formula:

ROI=Net operating income/cost of investment

Assuming in this question

Cost of investment =average operating assets=$504,000

Net operating income=$45,360

ROI=$45,360/$504,000=9%

So based on the above discussion the answer is B.9.0%

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