Return on investment last year

Question

Problem: The Northern Division of the Kimball Company reported the following data for last year:

Sales                                              800,000
Operating expenses                         690,000
Stockholders' equity                         250,000
Average operating assets                  400,000
Minimum required rate of return           14%

Reference: 12-10

The return on investment last year for the Northern Division was:

• 50%
• 44%
• 27.5%
• 80%