Match Corporation has provided the following information:
Total assets: $200,000
Profit margin: 30%
Turnover: .20
Minimum acceptable return: 12%
What is Match's return on investment?
A) 6%
B) 30%
C) 18%
D) 2.4%

Question

Quizplus · Accepted Answer

The return on investment (ROI) can be calculated using the formula ROI = Profit Margin * Turnover. Given a profit margin of 30% (or 0.30) and a turnover of 0.20, the ROI = 0.30 * 0.20 = 0.06, or 6%.

Match Corporation Has Provided the Following Information