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. What is the return on investment?
A) 57.9%
B) 172.3%
C) 5.0%
D) 115.0%

Question

Quizplus · Accepted Answer

The return on investment (ROI) is calculated by dividing the net income by the total invested assets and then multiplying by 100 to get a percentage. So, ROI = ($275,000 / $475,000) * 100 = 57.9%.

Tom's Tool Factory Is an Investment Center and Is Responsible