If Division Q's Yearly Operating Income Was $30,000 on Invested

question 189

True/False

If Division Q's yearly operating income was $30,000 on invested assets of $200,000, the return on investment is 15%.

---

Definitions:

Capital Equipment

Capital equipment consists of tangible assets such as buildings, machinery, and tools that are used in the production process to generate goods and services.

Nominal Wages

The wage earned by workers as expressed in current dollars, without adjustment for inflation, representing the face value of the pay received.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy.

Real Wages

The purchasing power of wages, reflecting the quantity of goods and services that can be bought with wages after adjusting for inflation.