Please help. Please show work to get credit. Beall Industries is a division of a

Question

Please help.  Please show work to get credit.  

Beall Industries is a division of a major corporation. Last year the division had total sales of $20,160,000, net operating income of $1,592,640, and average operating assets of $8,000,000.

The division's return on investment (ROI) is closest to:

19.9% 16.6% 1.6% 5.7% Beall Industries is a division of a major corporation. Last year the division had total sales of $20,160,000, net operating income of $1,592,640, and average operating assets of $8,000,000. The division's return on investment (ROI) is closest to: The Baily Division recorded operating data as follows for the past two years:

Explanation / Answer

Hi,

Please find the answers as follows:

Part A:

ROI = Net Income/Average Operating Assets*100 = 1592640/8000000*100 = 19.9%

Option A is correct.

Part B:

ROI = Net Income/Average Operating Assets*100

22.5 = Net Income/600000

Net Income = 135000

Margin = Net Income/Sales*100

15 = 135000/Sales*100

Sales = 135000/.15 = 900000

Option B is correct.

Thanks.

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