Pinewood Furniture Co. manufactures and sells furniture. Last year, sales were $3,500,000, operating income was $875,000, and the assets used were $4,500,000. What is the return on investment (ROI) for Pinewood Furniture? a. 20.33% b. 80.27% c. 25.68% d. 19.44% e. none of the above

Pinewood Furniture Co. manufactures and sells furniture. Last year, sales were $3,500,000, operating income was $875,000, and the assets used were $4,500,000. What is the return on investment (ROI) for Pinewood Furniture? a. 20.33% b. 80.27% c. 25.68% d. 19.44% e. none of the above

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

What is the return on investment for this financial accounting question?

Pinewood Furniture Co. manufactures and sells furniture. Last year, sales were
$3,500,000, operating income was $875,000, and the assets used were
$4,500,000.
What is the return on investment (ROI) for Pinewood Furniture?
a. 20.33%
b. 80.27%
c. 25.68%
d. 19.44%
e. none of the above

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

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