Chow Company Has a Number of Investment Centers to Track $\begin{array}{lr}\text { Operating income } & \$ 6,000,000 \\\text { Sales } & 15,000,000 \\\text { Asset turnover } & 47 \%\end{array}$

question 70

Multiple Choice

Chow Company has a number of investment centers to track on a day-to-day basis. The following represent key figures related to one of Chow's investment centers for May 2010: $\begin{array}{lr}\text { Operating income } & \$ 6,000,000 \\\text { Sales } & 15,000,000 \\\text { Asset turnover } & 47 \%\end{array}$ What is the investment center's ROI for May 2010 (rounded to two decimal places) ?

• A) 23.5 percent
• B) 28.2 percent
• C) 47 percent
• D) 18.8 percent

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Definitions:

Interstate Commerce

Interstate commerce involves the purchase, sale, or exchange of commodities, transportation of people, money, or goods, and navigation of waters between different states, regulated by the federal government in the United States.

American System

An economic plan developed in the early 19th century by Henry Clay, advocating for a strong role for federal government in promoting infrastructure, a protective tariff to support American industry, and a national bank to foster development.

Surplus Goods

Items that exceed what is needed or used, often produced in larger quantities than necessary, leading to excess inventory.

Jethro Wood

An American inventor credited with the patented design of the cast iron plow with replaceable parts in the early 19th century.