Question

In: Accounting

What is the Return of investment?

An investment center of trevin Corporation shows an operating income of $9,000 on total operating assets of $150,000.

 

Required

Compare the return on investment. round the computation to two decimal points.

Solutions

Expert Solution

Return on Investments can be found by dividing Operating Income by Operating Assets

 

The Operating Income is  $9,000

The Operating Assets is $150,000

 

Return on investment = Operating Income/ Operating Assets

Return on investment  = $9,000 / $150,000

Return on investment  = 0.06

Return on investment  = 6.00%

The ROI is 0.06 or  6.00%

The return on investment is 6%

Christopher Mann answered 2 years ago
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