Haney Fabrication is a division of a major corporation. Last year the division had total sales of $21,560,000, net operating income of $1,897,280, and average operating assets of $7,000,000. The company's minimum required rate of return is 16%.Required:What is the division's return on investment (ROI)?
What will be an ideal response?
ROI = Net operating income ÷ Average operating assets = $1,897,280 ÷ $7,000,000 = 27.1%
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