Average operating assets


Merck Pharmaceuticals is evaluating its Vioxx division, an investment center. The division has a $45,000 controllable margin and $300,000 of sales. How much will Merck's average operating assets be when its return on investment is 10%?

a) $450,000

b) $495,000

c) $300,000

d) $255,000

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Accounting Basics: Average operating assets
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