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11 July, 09:35

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.

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  1. 11 July, 10:46
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    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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