For the most recent year, Robin Company reports operating income of $660,000. Robin's sales margin is 7%, and capital turnover is 2.0. What is Robin's return on investment (ROI)? Question 15 options: 2% 7% 4% 14%

For the most recent year, Robin Company reports operating income of $660,000. Robin's sales margin is 7%, and capital turnover is 2.0. What is Robin's return on investment (ROI)? Question 15 options: 2% 7% 4% 14%

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 4BE: Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested...

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Question

For the most recent year, Robin Company reports operating income of $660,000. Robin's sales margin is 7%, and capital turnover is 2.0.

What is Robin's return on investment (ROI)?

Question 15 options:

	2%
	7%
	4%
	14%

Formula Formula ROI (%) = Net Income Principal Amount × 100

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