Campbell Candy Corporation desires a 16% return on investment (ROI) on all operations. The following information was available for the company for the current year: What is the corporation's ROI? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
A) 16.80%
B) 28.00%
C) 32.00%
D) Impossible to determine from the information given.

Question

Campbell Candy Corporation desires a 16% return on investment (ROI) on all operations. The following information was available for the company for the current year:  What is the corporation's ROI? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
A) 16.80% 
B) 28.00% 
C) 32.00% 
D) Impossible to determine from the information given.

Quizplus · Accepted Answer

ROI = Margin × Turnover
ROI = (Operating income ÷ Sales) × Turnover
ROI = ($70,000 ÷ $250,000) × 0.6 = 0.28 × 0.6 = 16.80%

Campbell Candy Corporation Desires a 16% Return on Investment (ROI)