Jennifer wants to sell the Reiser Company billing department two top-of-the-line laser printers from her company at the cost of $8,000.To convince the buyers,she shows them that the new printers would print both the invoice form and the information about a particular sale on plain paper at the same time.This would save the company $32,000 because preprinted forms would no longer have to be purchased and filled in using a typewriter."That's a savings of 300 percent!" she said.She arrived at the figure of 300 percent savings by computing the:

Question

Quizplus · Accepted Answer

Jennifer computed the return on investment by dividing the savings of $32,000 by the cost of the printers at $8,000 and multiplying the result by 100. This gave her a return on investment of 400 percent. However, since the savings are only 3 times the cost of the printers, she concluded that the savings were a 300 percent increase over the cost, which is the percentage of the cost that the savings represent. Therefore, the best choice is B - return on investment.

Jennifer Wants to Sell the Reiser Company Billing Department Two