The Following Results Pertain to an Investment Center How Much Is the Return on Investment (ROI) for This

question 19

Multiple Choice

The following results pertain to an investment center.
$\begin{array}{lc}\text { Sales } & \$ 1,500,000 \\\text { Variable costs } & 800,000 \\\text { Traceable fixed costs } & 100,000 \\\text { Average investment } & 1,000,000 \\\text { Divisional cost of capital (discount rate) } & 10 \%\end{array}$ How much is the return on investment (ROI) for this investment center?

• A)5%.
• B)50%.
• C)60%.
• D)70%.
• E)75%.

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