Jamison Company had sales revenue and operating expenses of $5,000,000 and $4,200,000, respectively, for the year just ended. If

Question

3 years ago

12

invested capital amounted to $6,000,000, the firm's ROI was:_________
A. 13.33%.
B. 83.33%.
C. 120.00%.
D. 750.00%.

1 answer:

Evgesh-ka [11] · Answer 1 · 2022-09-05T07:00:15+03:00

Answer:

A,. 13.33%.

Explanation:

Return on Investment (ROI) which gives the efficiency of a particular investment

We were given invested capital amounted as $6,000,000, and operating expenses as $5,000,000

We can calculate net income by substracing equal sales revenue from operating expenses

net income can be calculated as = ($5000000-$420000)

= $800000

ROI can be calculated as

net income/Capital investment

$800000/$6000000

=. 13.33%.