Question 1

Leon George sold kites at the beach last summer. He invested $2,500 in the venture and made $1,400 net profit (net income). Calculate his return on investment.

Accepted Answer

Return on investment (ROI) is calculated as (Net Profit / Investment) * 100. Here, ROI = ($1,400 / $2,500) * 100 = 56.0 percent.

Question 2

The ________ is the ratio of net income to the investment used to earn that net income.

Accepted Answer

Return on investment (ROI) is the ratio of net income to the investment used to earn that net income.

Question 3

Rebecca Gollanek makes and sells wooden cooling racks for cakes, cookies, and bread for $22.50 each. She has invested $4,300 in the venture and made $2,200 in net profit. Calculate her return on investment.

Accepted Answer

The answer of Rebecca Gollanek makes and sells wooden cooling...

Question 4

Leon George sold kites at the beach last summer. He invested $2,500 in kites and ended the season with $100 worth of kite inventory. Calculate his stock turn rate for the summer.

Accepted Answer

The stock turn rate is calculated as (Cost of Goods Sold) / (Average Inventory). Leon sold $2,400 worth of kites ($2,500 - $100). Assuming the average inventory is the initial investment, the stock turn rate is $2,400 / $1,200 = 2.0.

Quiz 24: Financial Aspects of Marketing

Leon George sold kites at the beach last summer. He invested $2,500 in the venture and made $1,400 net profit (net income) . Calculate his return on investment.

The ________ is the ratio of net income to the investment used to earn that net income.

Rebecca Gollanek makes and sells wooden cooling racks for cakes, cookies, and bread for $22.50 each. She has invested $4,300 in the venture and made $2,200 in net profit. Calculate her return on investment.

Leon George sold kites at the beach last summer. He invested $2,500 in kites and ended the season with $100 worth of kite inventory. Calculate his stock turn rate for the summer.