Carey, Inc. provides the following information: Profit margin ratio 5% Asset turnover ratio 2 times Net sales $450,000 Target rate of return 9% Calculate the return on investment. A) 10% B) 45% C) 4% D) 14%

Carey, Inc. provides the following information: Profit margin ratio 5% Asset turnover ratio 2 times Net sales $450,000 Target rate of return 9% Calculate the return on investment. A) 10% B) 45% C) 4% D) 14%

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 4BE: Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested...

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Question

100%

Calculate return on investment and give true answer

Carey, Inc. provides the following information:
Profit margin ratio 5%
Asset turnover ratio 2 times
Net sales
$450,000
Target rate of return 9%
Calculate the return on investment.
A) 10%
B) 45%
C) 4%
D) 14%

Formula Formula ROI (%) = Net Income Principal Amount × 100

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