Joy Home Fashions reported a return on investment during the year of 6 per cent and a profit margin of 12 per cent. What was the investment turnover for the year?
A) 18%
B) 50%
C) 72%
D) 20%

Question

Quizplus · Accepted Answer

To find the investment turnover, we need to use the formula:
Return on Investment = Profit Margin x Investment Turnover
6% = 12% x Investment Turnover
Investment Turnover = 6%/12% = 0.5 = 50%. Therefore, the answer is B.

Joy Home Fashions Reported a Return on Investment During the Year