Walden Motor Company has a profit margin of 11%. Sales are $320,000, net operating income is $35,200, and average operating assets are $128,000. What is the company’s return on investment (ROI)?
a. 25.5%
b. 11.5%
Selected: c. 27.5% This answer is correct.
d. 40.0%
Correct! ROI = Net operating income ÷ Average operating assets = $35,200 ÷ $128,000 = 27.5%