Use the Following Information to Answer Question Hays Company Has Set a Target Return on Investment (ROI)

Essay

Use the following information to answer Question. Renfro Company has two divisions, the Restaurants Division and the Commissary Division. The following information was gathered for the two divisions in 2012: $$\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Restaurants } \\\text { Division }\end{array} & \begin{array} { l } \text { Commissary } \\\text { Division }\end{array} \\\hline \text { Operating Income } & \$ 4,000,000 & \$ 1,500,000 \\\hline \text { Operating Assets } & \$ 30,000,000 & \$ 10,500,000 \\\hline\end{array}$$
Hays Company has set a target return on investment (ROI) of 12% for both divisions.
Restaurants and Commissary are the only divisions of Renfro Company. The company has $1,000,000 in operating assets that are not assigned to either of the divisions and $200,000 in corporate expenses that are not reflected in the information above. Based on this information, what is the ROI for the company as a whole?