A. This answer is incorrect. See the correct answer for a detailed explanation of how this problem should be solved.
B. This answer is incorrect. See the correct answer for a detailed explanation of how this problem should be solved.
C. This answer is incorrect. See the correct answer for a detailed explanation of how this problem should be solved.
D. Return on investment is calculated as the net income of the company divided by the average total assets. The profit margin is calculated as net income divided by net sales. Total asset turnover is calculated as net sales divided by average total assets. Putting all of the formulas together, if we multiply the total asset turnover by the profit margin we eliminate the net sales figure from the numerator of the one ratio and the denominator of the others, we are left with the formula for return on investment: net income divided by average total assets.