From the information given below, calculate the organization's return on investment. Total Liabilities = $300,000; Total Assets = $600,000; Gross Margin = $200,000; Net Income Before Taxes = $30,000; Total Expenses = $240,000
A) 50 percent
B) 5 percent
C) 10 percent
D) 12.5 percent

Question

Quizplus · Accepted Answer

ROI = net profit before taxes/total assets = $30,000/$600,000 = .05 = 5 percent.Refer: Table 8.1

From the Information Given Below, Calculate the Organization's Return on Investment