Sarasota Corporation has operating income of $72,000,a sales margin of 12%,and capital turnover of 3.0.The return on investment (ROI)for Sarasota Corporation would be closest to:

Name: Sarasota Corporation has operating income of $72,000,a sales margin of 12%,and capital turnover of 3.0.The return on investment (ROI)for Sarasota Corporation would be closest to:
Brand: Quizplus
Rating: 4.8 (55 reviews)

Question

Quizplus · Accepted Answer

The ROI is calculated by multiplying the sales margin by the capital turnover. Here, ROI = 12% * 3.0 = 36%.

Sarasota Corporation Has Operating Income of $72,000,a Sales Margin of 12%,and