The following information relates to last year's operations at the legumes division of gervani corporation:
minimum required rate of return 12 %
return on investment (roi) 15 %
sales $ 900,000
turnover (on operating assets) 3 times
what was the legume division's net operating income last year? multiple choice
a. $108,000
b. $135,000
c. $36,000
d. $45,000

The Legume Division's net operating income last year was d. $45,000

Explanation:

Turnover (on operating assets) = Total Sales/ Operating assets

From the formula,

Operating assets = Total Sales/Turnover (on operating assets) = $900,000/3 = $300,000

Return on investment (ROI) is calculated by using following formula:

ROI = Net income/Total investment

Net Income = ROI x Total investment

At the Legumes Division of Gervani Corporation, Total investment  = Operating assets = $300,000

Net Income = 15% x $300,000 = $45,000

answer; (a) calling people who have not shown interest in the product and asking them to buy it;