Tom's Tool Factory is an investment center and is responsible for all of its net income and the use of its assets. This year, the invested assets totaled $475,000, and net income was $275,000. The return on investment (ROI) is
A)57.9%
B)172.3%
C)5.0%
D)115.0%

Question

Quizplus · Accepted Answer

ROI is calculated as (Net Income / Invested Assets) * 100. For Tom's Tool Factory, this is ($275,000 / $475,000) * 100 = 57.9%.

Tom's Tool Factory Is an Investment Center and Is Responsible