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When using the return on investment (ROI) formula, A : controllable margin is divided by average investment center operating assets. B : sales are divided by average investment center operating assets. C : sales are divided by net income. D : controllable margin is divided by sales.

Answer :

Answer:

A : controllable margin is divided by average investment center operating assets

Explanation:

The formula to compute the return on investment (ROI) is shown below:

Return on investment = (Return / Net income) ÷ (cost of investment)

In this given situation, the most appropriate option is A as  a controllable margin means contribution margin -  controllable fixed cost which is divided by the average investment

This contribution margin -  controllable fixed cost = Net income

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