Asked by Darren Szack on Jul 15, 2024
Verified
Tom's Tool Factory is an investment center and is responsible for all of its net income and the use of its assets. This year, the invested assets totaled $475,000, and net income was $275,000. The return on investment (ROI) is
A) 57.9%
B) 172.3%
C) 5.0%
D) 115.0%
Return On Investment
A metric used to evaluate the efficiency of an investment, calculated as the profit from an investment relative to its cost.
Invested Assets
Resources put into a business by its owners or shareholders with the expectation of generating future income or profit.
Net Income
The amount of earnings remaining after all expenses, taxes, and costs have been subtracted from total revenue.
- Comprehend and discern the distinctions between investment centers and profit centers.
Verified Answer
Learning Objectives
- Comprehend and discern the distinctions between investment centers and profit centers.
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