If a company has sales of $2,500,000,net income of $250,000,and an asset base of $1,250,000,what is its return on investment?

Name: If a company has sales of $2,500,000,net income of $250,000,and an asset base of $1,250,000,what is its return on investment?
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Question

Quizplus · Accepted Answer

Return on investment (ROI) is calculated by dividing the net income by the total assets.

ROI = (Net Income / Total Assets) x 100

In this case,

ROI = (250,000 / 1,250,000) x 100
    = 20%

Therefore, the answer is B) 20%.

If a Company Has Sales of $2,500,000,net Income of $250,000,and