Chavin Company had the following results during August: net operating income, $250,000; turnover, 5; and return on investment (ROI) 19%. Chavin Company's average operating assets were:_________. A. $50,000 B. $47,500 C. $1,250,000 D. $1,315,789

Answers

Answer 1

Answer: D. $1,315,789

Explanation:

Return on Investment = Net operating income/ Average operating assets

Average return on Assets will therefore be;

= Net Operating Income/ Return on Investment

= 250,000/0.19

= $1,315,789.47

= $1,315,789


Related Questions

The Cereal Bar, a fast-food restaurant that sells breakfast cereal, wanted to see if a different price for its Wild O's breakfast special would affect demand. So the marketing manager used ________ when she tested two different prices at two different stores and compared sales.

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b. segmentation research
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Answers

Answer: test marketing

Explanation:

Test marketing is a marketing technique that is used by companies in order to know how the consumers will respond to a certain product. This is done by making the product to be available to the consumers on limited basis after which the demand for the product is being ascertained by the company before a wider release.

This is the method used by cereal bar. Therefore, the answer is test marketing

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