The Jazz Division of Heights Recording Corporation reported the following results last year:

Sales	$10,000,000
Operating Income	$2,200,000
Total Assets	$4,000,000
Current Liabilities	$2,500,000

Management's target rate of return is 12% and the weighted average cost of capital is 9%. Its effective tax rate is 32%. Calculate the ROI for the Jazz Division.

A.

22%

B.

12%

C.

88%

D.

55%

Did the Jazz Division earn or exceed the target rate of return?

A.

Yes

B.

No