Maury Company's revenues are $300 for the year.Average invested capital for the year is $240.Expenses are currently 84% of revenues.If Maury Company can reduce its expenses to 70% of revenues,return on investment will be ________.

Question

Quizplus · Accepted Answer

With expenses reduced to 70% of revenues, expenses would be $300 * 70% = $210. Profit would then be $300 - $210 = $90. Return on investment (ROI) is calculated as (Profit / Invested Capital) * 100, so ($90 / $240) * 100 = 37.5%.

Maury Company's Revenues Are $300 for the Year