Calculating Return on Investment for an Investment Center Is Defined

question 33

Multiple Choice

Calculating return on investment for an investment center is defined by the following formula:

• A)Contribution margin/Ending assets.
• B)Gross profit/Ending assets.
• C)Net income/Ending assets.
• D)Income/Average invested assets.
• E)Contribution margin/Average invested assets.

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Definitions:

Utility Function

A mathematical representation of a consumer's preference ordering over a set of goods and services, showing the satisfaction level from consumption.

Consumption Of X

The act of using up a particular resource X or the amount of X that is used.

Units Of Y

A generic term for the measurement used to quantify the output in a given economic or mathematical model.

Utility Function

An economic model that describes how consumers rank different bundles of goods according to the levels of satisfaction or utility those bundles provide.