Reed Company's sales last year totaled $150,000 and its return on investment (ROI)was 12%.If the company's turnover was 3,then its net operating income for the year must have been:

Question

Quizplus · Accepted Answer

ROI = Margin F1F1F1S1F1F1F10 Turnover
Margin = ROI F1F1F1S1F1F1F10 Turnover = 12% F1F1F1S1F1F1F10 3 = 4%
Margin = Net operating income F1F1F1S1F1F1F10 Sales
Net operating income = Margin F1F1F1S1F1F1F10 Sales = 4% F1F1F1S1F1F1F10 $150,000 = $6,000

Reed Company's Sales Last Year Totaled $150,000 and Its Return