Carter Company reported the following financial numbers for one of its divisions for the year

 Carter Company reported the following financial numbers for one of its divisions for the year; average assets of $4,140,000; sales of $4,565,000; cost of goods sold of $2,590,000; and operating expenses of $1,412,000. Compute the division's return on investment:

Multiple Choice

21.74%.


9.30%.


28.51%.


13.60%. Correct

12.33%.

Explanation
Investment center income/Investment center average invested assets
Investment center income = $4,565,000 − 2,590,000 − 1,412,000 = $563,000
$563,000/$4,140,000 = 13.60%