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5 September, 16:06

Joseph Company has an investment in assets of $1,224,000, operating income that is 10% of sales, and an ROI of 18%. From this information the amount of operating income would be:

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  1. 5 September, 18:56
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    Operating income = $220,320

    Explanation:

    Operating income is the difference between revenue and operating cost.

    ROI is the operating income expressed as a percentage of investment in assets.

    ROI = operating income/investment

    let operating income = y, investment in assets = $1,224,000

    18% = y/1,224,000

    y = 18% * 1,224,000 = 220320

    Operating income = $220,320
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