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%

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

• 50%
• 44%
• 27.5%
• 80%