A business that sells watches that are more inexpensive than the watches a competitor sells is using a private sector type of competition.
The ROI calculation will indicate (C) how effectively a company used its invested capital.
<h3>
What is ROI?</h3>
- Return on investment, often known as return on costs, is a ratio of net income to investors.
- A high ROI indicates that the benefits of the investment outweigh the costs.
- ROI is used as a performance indicator to evaluate the efficiency of an investment or to compare the efficiencies of several investments.
<h3>What is ROI calculation?</h3>
- A computation that compares the monetary value of an investment against its cost.
- (profit minus cost) / cost is the ROI formula.
- If you earned $10,000 from a $1,000 investment, your return on investment (ROI) would be 0.9, or 90%.
- This is commonly obtained by using an investment calculator.
- The ROI calculation will show how well a business utilizes its invested capital.
As the description says, the ROI calculation will show how well a business utilizes its invested capital.
Therefore, the ROI calculation will indicate (C) how effectively a company used its invested capital.
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Complete question:
The ROI calculation will indicate:
A. the percentage of each sales dollar that is invested in assets.
B. the sales dollars generated from each dollar of income.
C. how effectively a company used its invested capital.
D. the invested capital generated from each dollar of income.
E. the overall quality of a company's earnings.
Answer:
correct option is a. $36,000
Explanation:
given data
labor cost = $360,000
move material per year = 600,000 pounds
to find out
material handling cost
solution
we find here first Labor Cost per pound of material that is express as
Labor Cost per pound of material = Labor Cost ÷ Number of Pounds of material .......................1
Labor Cost per pound of material =
Labor Cost per pound of material = $ .6 per pound of material
=360000/600000= $0.6 per pound of material
so we can say that 60000 pounds are moved in March so cost will be
60000 pounds are move cost = 60000 × $0.6
60000 pounds are move cost = $36000
so correct option is a. $36,000