"Yo-to-go" is an entrepreneurial venture of a college student named Cathy Frank. She sells yogurts in cups and cones from a trailer at the beach during the tourist season. If Frank pays $500 for cartons of yogurts then sells it all for $1200, how much is her return on investment?

Question

Quizplus · Accepted Answer

The return on investment (ROI) is calculated by subtracting the initial cost of the investment from the final return, then dividing by the initial cost. Here, ROI = ($1200 - $500) / $500 = $700 / $500 = 1.4 or 140%. The actual return amount is $700.

"Yo-To-Go" Is an Entrepreneurial Venture of a College Student Named