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Sheridan Company recorded operating data for its Cheap division for the year. Sheridan requires its return to be 10%. Sales $2200000 Controllable margin 200000 Total average assets 5000000 Fixed costs 100000 What is the ROI for the year? 11% 6% 44% 4%

Respuesta :

Answer:

ROI of the year will be 4 %

So option (d) will be correct option

Explanation:

We have given controllable margin = 200000

And total average assets = 5000000

We have to find the ROI

We know that ROI is given by

[tex]ROI=\frac{Contrlable\ margin}{total\ average\ asset}=\frac{200000}{5000000}=0.04[/tex] = 4 %

So ROI of the year will be equal to 4 %

So option (d) will be correct answer

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