Database systems is considering expansion into a new product line. assets to support expansion will cost $750,000. it is estimated that database systems can generate $2,150,000 in annual sales, with an 7 percent profit margin. what would net income and return on assets (investment) be for the year? (input your return on assets answer as a percent rounded to 2 decimal places.)

The net income is $150,500 and the return on assets is 20.06 %

Explanation:

The formula for computing net income and return on assets is shown below and the computation is also made.

Net income =  Sales revenue × Profit margin

                   = $2,150,000 × 7%

                   = $150,500

Return on assets = Net income ÷ total assets

                            = $150,500 ÷ $750,000

                            = 0.2006

                            = 20.06 %

Thus, the net income is $150,500 and the return on assets is 20.06 %

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answer; erp systems;