**The Box Manufacturing Division's Performance Analysis**The Box Manufacturing Division of the Allied Paper Company reported the following financial results from the past year. Shareholders require a minimum return of 9%.**Financial Summary:**| Category | Amount ||------------------------|-------------|| Sales | $900,000 || Operating Income | $180,000 || Total Assets | $1,800,000 || Current Liabilities | $800,000 |**Question:**What is the division's Return on Investment (ROI)?**Options:**- 88.89%- 10.00%- 50.00%- 20.00%To calculate ROI, use the formula:\[ \text{ROI} = \left( \frac{\text{Operating Income}}{\text{Total Assets}} \right) \times 100 \]Substituting the reported numbers:\[ \text{ROI} = \left( \frac{180,000}{1,800,000} \right) \times 100 = 10\% \]Based on the calculations, the correct answer is **10.00%**.

Introduction:-The following formula used to calculate as follows under:-Return on…

Answered: The Box Manufacturing Division of the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 9%. Sales $900,000