n the formula for return on investment (ROI), the factors used are contribution margin and total operating assets. contribution margin and average operating assets. controllable margin and average operating assets. controllable margin and total assets.

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Business

Yasmin Burnett

11 January, 04:00

n the formula for return on investment (ROI), the factors used are contribution margin and total operating assets. contribution margin and average operating assets. controllable margin and average operating assets. controllable margin and total assets.

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Kaila Hopkins · Answer 1

Controllable margin and average operating assets.

Explanation:

Return on investment is defined as the gain or loss on a particular investment. It measures the amount of gain or loss generated by investing in a particular type of asset. It is generally used to take the financial decisions (Personal) by comparing the profitability of various companies.

For example:

Controllable margin = $360,000

Average operating assets = $3,000,000

Therefore, the return on investment is calculated as follows:

= Controllable margin : Average operating assets

= $360,000 : $3,000,000

= 0.12 or 12%