Selected Data from Chering Division's Accounting Records Revealed the Following

question 84

Multiple Choice

Selected data from Chering Division's accounting records revealed the following:
$\begin{array}{lcc}\text { Sales } & \$ 825,000 \\\text { Average investment } & \$ 440,000 \\\text { Net operating income } & \$ 66,000 \\\text { Minimum rate of return (divisional cost of capital) } & 14 \%\end{array}$
Chering Division's return on investment (ROI) is:

• A)6.0%.
• B)8.0%.
• C)14.0%.
• D)15.0%.
• E)20.0%.

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Definitions:

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