Question

Your restaurant revenue is $710,000, expenses total $890,000, and your total invest is $3 million what is your return investment?

Answer 1

Return on investment = -6%

Step-by-step explanation:

Given:

Gross revenue of restaurant = $710,000

Total expenses of restaurant = $890,000

Total investment = $3,000,000

Find:

Return on investment

Computation:

Net profit = $710,000 - $890,000

⇒ Net profit = -$180,000

Return on investment = [Net profit / Total investment]100

⇒ Return on investment = [-180,000 / 3,000,000]100

⇒ Return on investment = [-0.06]100

Return on investment = -6%