The income statement for the Commercial Construction Division of the Kenyon Company is as follows:

Category Value

Sales $272,000

Operating expenses 132,000

Net operating income 140,000

Interest expense 20,000

Earnings before taxes 120,000

Income tax expense (30%) 36,000

Net income $84,000

If this division's invested capital is $500,000, how much is its return on investment?

a.19.6%

b.16.8%

c.20.8%

d.14.0%