Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: Sales$37,080,000 Net operating income$3,108,960 Average operating assets$8,600,000 The company's minimum required rate of return 16% The division's margin used to compute ROI is closest to: Multiple Choice 31.6% 36.2% 23.2% 8.4%

Question

Lance Campbell

Business

31 January, 19:20

Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: Sales$37,080,000 Net operating income$3,108,960 Average operating assets$8,600,000 The company's minimum required rate of return 16% The division's margin used to compute ROI is closest to: Multiple Choice 31.6% 36.2% 23.2% 8.4%

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Valerie Daniels · Answer 1

36.2%

Explanation:

The ROI known as the return on investment is a performance tool used to measure the efficiency of an investment. It is calculated by dividing the net income by average operating assets, then multiply the result by 100. It is useful for measuring the performance of an investment overtime.

Workings

Net operating income = $3,108,960

Operating assets $8,600,000

ROI = 3108960/8600000*100 = 36.2%