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Gardner Chemical's Income is $6,000, Revenue is $24,000, and Average Assets are $10,000. What is the Return on Investment (ROI)?

a) 15%

b) 24%

c) 60%

d) 600%

User H Hatfield
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2 Answers

3 votes

Answer:

A

Step-by-step explanation:

User Rick Brewster
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4 votes

Final answer:

Gardner Chemical's ROI is calculated using the Net Income of $6,000 and Average Assets of $10,000, resulting in a ROI of 60%, which is option (c).

Step-by-step explanation:

The question provided pertains to calculating the Return on Investment (ROI). To calculate ROI, the formula ROI = (Net Income / Average Assets) × 100 is used. In the context of Gardner Chemical, the Net Income is $6,000, and Average Assets are $10,000. Therefore, the ROI would be ($6,000 / $10,000) × 100 = 60%. In this case, the correct answer would be option (c) 60%, which represents Gardner Chemical's efficiency in generating profits from its average assets.

User Geekchic
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