Jewel Company's revenues are $300 and invested capital is $240.Expenses are currently 60% of sales.Jewel Company's current return on investment is ________.

Question

Quizplus · Accepted Answer

Return on investment (ROI) is calculated as (Net Profit / Invested Capital) * 100. Net Profit is calculated as Revenues - Expenses. Expenses are 60% of $300, which is $180. Therefore, Net Profit is $300 - $180 = $120. ROI is ($120 / $240) * 100 = 50%.

Jewel Company's Revenues Are $300 and Invested Capital Is $240