Hagerman Corporation's most recent income statement appears below:

Sales (all on account)	$140,000
Cost of goods sold	80,000
Gross margin	60,000
Selling and administrative expenses	32,000
Net operating income	28,000
Interest expense	14,000
Net income before taxes	14,000
Income taxes (30%)	4,200
Net income	$ 9,800

The beginning balance of total assets was $180,000 and the ending balance was $178,000. The return on total assets is closest to: (Round your answer to 1 decimal place.)

5.5%

7.8%

15.6%

10.9%