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BR Company has a contribution margin of 40%. Sales are $312,500, net operating income is $25,000, and average operating assets are $200,000. What is the company's return on investment (ROI)?a. 12.5% b. 64.0% c. 8.0% d. 62.5%

Respuesta :

ayokenny2001

Answer:

A 12.5%

Explanation:

Given that:

Contribution margin = 40%

Sales = $312,500

Net operating income = $25,000

Average operating assets = $200,000

The formula for return on investment is

= Net operating income ÷ Average operating assets

= $25,000 ÷ $200,000

= 12.5%

Therefore, the company's net return on investment is 12.5%