Asked by Paula marques on May 16, 2024
Verified
For the past year, the margin used in ROI calculations was:
A) 6.00%
B) 8.67%
C) 10.00%
D) 8.00%
ROI Calculations
The process of determining the return on investment by dividing the net profit by the initial cost of the investment.
Margin
The difference between the selling price of a good or service and the cost of producing it, often expressed as a percentage of the selling price.
- Grasp the methods for calculating margins and turnovers.
Verified Answer
CM
Carley MahurinMay 19, 2024
Final Answer :
A
Explanation :
Margin = Net operating income ÷ Sales
= $45,000 ÷ $750,000 = 6%
= $45,000 ÷ $750,000 = 6%
Learning Objectives
- Grasp the methods for calculating margins and turnovers.