Dacker Products Is a Division of a Major Corporation The Division's Margin Used to Compute ROI Is Closest To

question 53

Multiple Choice

Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: $\begin{array}{lr}\text {Sales }&\$36,480,000\\\text {Net operating income }&\$2,808,960\\\text {Average operating assets }&\$8,000,000\\\text { The company's minimum required rate of return }&16\%\end{array}$
The division's margin used to compute ROI is closest to:

• A) 29.6%
• B) 35.1%
• C) 21.9%
• D) 7.7%

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Definitions:

Advertising

The activity or profession of producing commercials, billboards, and other promotional materials to promote products or services.

Operating Expenses

Costs incurred during the normal functioning of a business, excluding pricing of goods sold.

Net Income

Net Income is the total profit of a company after all expenses, including taxes and operating costs, have been deducted from revenues.

Accounts Payable

Money owed by a company to its creditors for goods and services that have been received but not yet paid for.