Jamison Company had sales revenue and operating expenses of $5,000,000 and $4,200,000, respectively, for the year just ended. If invested capital amounted to $6,000,000, the firm's ROI was:

Question

Quizplus · Accepted Answer

ROI (Return on Investment) is calculated as (Net Income / Invested Capital) * 100. Net Income is Sales Revenue minus Operating Expenses, which is $5,000,000 - $4,200,000 = $800,000. Therefore, ROI = ($800,000 / $6,000,000) * 100 = 13.33%.

Jamison Company Had Sales Revenue and Operating Expenses of $5,000,000