Return on investment (ROI) is calculated by:
A) multiplying the margin by the turnover.
B) dividing the margin by the turnover.
C) dividing the turnover by the margin.
D) adding the margin and the turnover.

Question

Quizplus · Accepted Answer

ROI is calculated by multiplying the margin (profit) by the turnover (total investment). Therefore, option A is the correct choice. Option B is the reverse of the calculation for ROI, so it is incorrect. Option C is also incorrect because dividing turnover by margin does not give us an accurate ROI figure. Option D involves adding two different types of figures (profit and investment), so it cannot be the correct choice.

Return on Investment (ROI) Is Calculated By