Two investment centers at Marshman Corporation have the following current-year income and asset data:Investment InvestmentCenter ACenter BInvestment center income$ 520,000 $630,000Investment center average invested assets$4,500,000 $3,000,000The return on investment (ROI) for Investment Center A is:Multiple Choice28.30%23.3047.6011.56% The return on investment (ROI) for Investment Center A is:Multiple Choice28.30%23.3047.6011.56%788.30%

ROI (Return of Investment) is calculated by dividing net income earned by average net assets of the company. ROI (Center A) = Investment income / Average net assets = ($520,000 / $4,500,000) x 100 = 11.56% Hence, the correct option is (d).

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Two investment centers at Marshman Corporation have the following current-year income and asset data: Investment Investment Center A Center B 520,000 $ 630,000 $4,500,000 $3,000,000 Investment center income $ Investment center average invested assets The return on investment (ROI) for Investment Center A is: Multiple Choice 28.30% 23.30 47.60 11.56%

Two investment centers at Marshman Corporation have the following current-year income and asset data: Investment Investment Center A Center B 520,000 $ 630,000 $4,500,000 $3,000,000 Investment center income $ Investment center average invested assets The return on investment (ROI) for Investment Center A is: Multiple Choice 28.30% 23.30 47.60 11.56%

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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