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2 years ago

Yellowday Energy’s margin was 3% and turnover was 4.0 on sales of $50 million for the year. ROI for the year was:______

Business

1 answer:

Firlakuza [10]2 years ago

4 0

Answer:c. 12.0%

Explanation:Return on Investment (ROI) is a measure used by firms in order to determine how effective an investment is in terms of gains from its proceeds when compared to the amount invested .

Given

Yellowday Energy margin as 3%

turnover= 4.0 and sales as $50million,

we can calculate the ROI,Return on Investment , as the Profit margin multiplied by turnover

ROI = Profit Margin x Turnover

= 3% x 4.0

= 0.03 x 4.0

=0.12

0.12 x 100

= 12.0%

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