The following information pertains to Artemis Co. for the year ended December 31: (CPA adapted)
$$\begin{array} { l l }
\text { Sales } & \$ 600,000 \
\text { Income } & \$ 100,000 \
\text { Capital irvestrnent } & \$ 400,000
\end{array}$$
Which of the following equations should be used to compute Artemis' return on investment (ROI)?
A) (4/6) × (6/1) = ROI
B) (1/6) × (6/4) = ROI
C) (4/6) × (1/6) = ROI
D) (6/4) × (6/1) = ROI

Question

The following information pertains to Artemis Co. for the year ended December 31: (CPA adapted)
$$\begin{array} { l l } 
\text { Sales } & \$ 600,000 \
\text { Income } & \$ 100,000 \
\text { Capital irvestrnent } & \$ 400,000
\end{array}$$
Which of the following equations should be used to compute Artemis' return on investment (ROI)?
A) (4/6) × (6/1) = ROI
B) (1/6) × (6/4) = ROI
C) (4/6) × (1/6) = ROI
D) (6/4) × (6/1) = ROI

Quizplus · Accepted Answer

The Answer of The following information pertains to Artemis Co. for the year ended December 31: (CPA adapted)
$$\begin{array} { l l } 
\text { Sales } & \$ 600,000 \
\text { Income } & \$ 100,000 \
\text { Capital irvestrnent } & \$ 400,000
\end{array}$$
Which of the following equations should be used to compute Artemis' return on investment (ROI)?
A) (4/6) × (6/1) = ROI
B) (1/6) × (6/4) = ROI
C) (4/6) × (1/6) = ROI
D) (6/4) × (6/1) = ROI