Return on assets is net income available to common shareholders divided by average total assets. Net income is $400,000 revenues - $100,000 variable costs - $200,000 fixed costs = $100,000. $100,000 divided by average assets of $1,000,000 = .10 or 10%.
Return on assets is net income available to common shareholders divided by average total assets. This answer does not include the fixed costs in the calculation of net income. Also, this answer uses average net assets (assets minus liabilities) instead of total assets.
Return on assets is net income available to common shareholders divided by average total assets. This answer uses average net assets (assets minus liabilities)
Return on assets is net income available to common shareholders divided by average total assets. This answer does not include the fixed costs in the calculation of net income.
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