Compute the return on investment (ROI) for X Company.

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...
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X Company, a division of a major oil company, provides various services to the operators of oil fields in the Middle East. Data concerning the most recent year appear below:

•  Sales- P18,000,000

•  Net operating ratio- 30%

•  Average Operating assets- P36,000,000

Compute the return on investment (ROI) for X Company.

 

choices:

• None of the above
• 20%
• 25%
• 15%
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