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Fill in the Blank QuestionFill in the blank question.A manufacturing division has an average assets of $1,800,000 and income of $720,000. The division's return on investment is %.

Question

Fill in the Blank QuestionFill in the blank question.A manufacturing division has an average assets of 1,800,000andincomeof1,800,000 and income of 720,000. The division's return on investment is %.

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Solution

To calculate the division's return on investment (ROI), you would use the following formula:

ROI = (Income / Average Assets) * 100%

Here's how you can calculate it:

  1. First, identify the income and average assets from the question. The income is 720,000andtheaverageassetsare720,000 and the average assets are 1,800,000.

  2. Next, divide the income by the average assets. So, 720,000/720,000 / 1,800,000 = 0.4

  3. Finally, multiply the result by 100% to get the ROI in percentage. So, 0.4 * 100% = 40%

Therefore, the division's return on investment is 40%.

This problem has been solved

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