If the profit margin is 15.5% and investment turnover is 1.3 times,return on investment is:
A) 1.3%
B) 15.5%
C) 20.2%
D) 11.9%

Name: If the profit margin is 15.5% and investment turnover is 1.3 times,return on investment is: A) 1.3% B) 15.5% C) 20.2% D) 11.9%
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Question

Quizplus · Accepted Answer

To find the return on investment, we need to use the formula ROI = profit margin x investment turnover. Plugging in the given values, we get ROI = 0.155 x 1.3 = 0.2015 or 20.2%. Therefore, the best choice is C.

If the Profit Margin Is 15