Asked by
Sarah Bachman
on Dec 17, 2024Verified
Largo Company recorded for the past year sales of $730,000 and average operating assets of $292,000. What is the margin that Largo Company needed to earn in order to achieve an return on investment (ROI) of 32.5%?
A) 32.50%
B) 2.50%
C) 3.08%
D) 13.00%
Operating Assets
Assets used by a business in its day-to-day operations to generate income, including equipment, property, and inventory.
- Absorb the idea of margin linked to investment scenarios and operational functions of firms.
- Learn to use the return on investment (ROI) formula for evaluating the success of a company.
Verified Answer
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Learning Objectives
- Absorb the idea of margin linked to investment scenarios and operational functions of firms.
- Learn to use the return on investment (ROI) formula for evaluating the success of a company.