Tyson Company's revenues are $300 and invested capital is $240. Expenses are currently 80% of sales. Tyson Company's current return on investment is:

Question

Quizplus · Accepted Answer

Return on investment (ROI) is calculated as (Net Income / Invested Capital). Net Income is Revenue minus Expenses. Expenses are 80% of $300, which is $240. Therefore, Net Income is $300 - $240 = $60. ROI is $60 / $240 = 25%.

Tyson Company's Revenues Are $300 and Invested Capital Is $240