Chapter 24, Problem 9QS

To determine

Introduction:

Return on investment (ROI):

Return on investment is a profitability ratio that represents the percentage return on the investment made. It is calculated by dividing the Net Income by the Average total assets. The formulas to calculate the ROI are as follows:

  $ROI =\frac{NetIncome}{Averagetotalassets}$

  $ROI (Expanded)=\frac{NetIncome}{Sales}\times \frac{Sales}{Averagetotalassets}$

Or

  $ROI=ProfitMarginRatio\times AssetTurnoverratio$

The return on investment for each investment center