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What was the service departments roi for the year

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Reference no: EM131912676

The Rhodes Company has two operating divisions. The company evaluates the performance of its divisions using the return on investment (ROI) measure. The following is information for the Service Division at the end of the year.

Service Division

Units repaired 8,000

Level of investment 400,000


Operating Expenses:

Direct Materials 40,000


Direct Labor 200,000

Overhead 25,000

Selling & Admin 15,000

Total Operating Expenses $280,000

The average service fee was $50 per unit. What was the Service Department's ROI for the year? (round to the nearest whole percent)

Reference no: EM131912676

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