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What was the service department roi for the year

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Reference no: EM132067536

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: EM132067536

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