Bouvous Corporation had the following information for 2015: $\begin{array}{lr}
\text { Revenue } & \$ 400,000 \
\text { Operating expenses } & 350,000 \
\text { Total assets } & 500,000
\end{array}$ What is the return on investment?
A) 10%
B) 20%
C) 25%
D) 18.2%

Question

Quizplus · Accepted Answer

Return on Investment (ROI) is calculated as (Net Income / Total Assets) * 100. Net Income = Revenue - Operating Expenses = $400,000 - $350,000 = $50,000. ROI = ($50,000 / $500,000) * 100 = 10%.