Determine the October 20xx ROI (Rounded to Two Decimal Places)

question 6

Multiple Choice

Determine the October 20xx ROI (rounded to two decimal places) for an investment center with the following information: $\begin{array}{|l|l|}\hline \text { Assets at September } 30,20 \mathrm{xx} & \$ 20,000,000 \\\hline \text { Assets at October } 31,20 \mathrm{xx} & 22,000,000 \\\hline \text { Assets at October } 15,20 \mathrm{xx} & 18,595,000 \\\hline & \\\hline \text { Operating income for the month ended October } 31,20 \mathrm{xx} & 5,000,000.0 \\\hline\end{array}$
Operating income for the month ended October 31, 20xx 5,000,000.0

• A) 25.8 percent
• B) 21.8 percent
• C) 23.8 percent
• D) 27.8 percent

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Definitions:

Operating Assets

Assets that are used for the day-to-day operations of a business, intended to generate revenue.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the initial cost of the investment.

Direct Fixed Costs

Expenses that are consistent and directly tied to the production of goods or services but do not vary with the level of output.

Common Fixed Costs

Expenses that do not change with the volume of production or sales and are shared among multiple products or services within a company.