Calculate the return on investment from the information given below. Net Income = $18,000; Advertising Expenses = $220,000; Total Liabilities = $120,000; Total Assets = $160,000; Gross Margin = $80,000; Taxes Paid = $2,000
A)16.67 percent
B)15 percent
C)11.25 percent
D)12.5 percent

Question

Quizplus · Accepted Answer

Return on Investment (ROI) is calculated as (Net Income / Total Assets) * 100. Here, ROI = ($18,000 / $160,000) * 100 = 11.25 percent.

Calculate the Return on Investment from the Information Given Below