Question

Jamison Company had sales revenue and operating expenses of $5,000,000 and $4,200,000, respectively, for the year just ended. If invested capital amounted to $6,000,000, the firm's ROI was: 120.00%. 83.33%. None of the answers is correct. 13.33%. 750.00%.

Answer 1

Answer: The ROI is 13.33%

Step-by-step explanation:

Return on Investment = Net Income / Total Investment

Where,

Net Income = $5,000,000 - $4,200,000 = $800,000

Total Investment = $6,000,000

Return on Investment =
`(800000)/(6000000)` = 13.33%