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?
$$\begin{array} { | l | l r | }
\hline \text { Sales } & \$ & 250,000 \
\hline \text { Operating Income } & \$ & 70,000 \
\hline \text { Turnover } & & 0.6 \
\hline
\end{array}$$

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?
$$\begin{array} { | l | l r | } 
\hline \text { Sales } & \$ & 250,000 \
\hline \text { Operating Income } & \$ & 70,000 \
\hline \text { Turnover } & & 0.6 \
\hline
\end{array}$$

Quizplus · Accepted Answer

ROI = Operating Income / Sales * Turnover= 70,000 / 250,000 * 0.6= 0.168= 16.8%

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