Solution : computation of return on investment % (ROI%,):
Sales. $ 41,00,000
Net operating income. $ 1,64,000
Average operating assets. $ 8,20,000
ROI (%) = Net operating income / Average operating asset X 100
ROI (%) = $ 1,64,000/ $ 8,20,000 X 100
ROI (%) = 20%
2nd situation :
Sales . = $ 41,00,000+ $ 13,50,000 = $ 54,50,000
Net operating income. = $ 1,64,000 + $ 2,03,875 = $ 3,67,875
Average operating assets = $ 8,20,000 + $ 2,70,000
= $ 10,90,000
ROI (%) = Net operating income / Average operating assets X 100
ROI (%) = $ 3,67,875 / $ 10,90,000 X 100 = 33.75 %
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