The 2007 income statement for the east division of the Homegoods Company is as follows:
Sales $2,000,000
Operating expenses 1,250,000
Net operating income 750,000
Interest expense 150,000
Earnings before taxes 600,000
Tax expense (40%) 240,000
Net Income $360,000
If this division’s invested capital is $3,000,000 then its return on investment is:
