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6 July, 19:34

BR Company has a contribution margin of 8%. Sales are $497,000, net operating income is $39,760, and average operating assets are $135,000. What is the company's return on investment (ROI) ? BR Company has a contribution margin of 8%. Sales are $497,000, net operating income is $39,760, and average operating assets are $135,000. What is the company's return on investment (ROI) ?

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  1. 6 July, 19:41
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    29.45%

    Explanation:

    Return on investment (ROI) is the ratio of a net profit / (loss) made in a financial period to the investment made by the entity in that period expressed as percentage.

    Mathematically,

    ROI = Net Profit / Total Investment * 100

    For the scenario about BR company

    ROI = $39,760/$135,000 * 100

    = 29.45%

    The company's return on investment (ROI) is 29.45%
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Home » Business » BR Company has a contribution margin of 8%. Sales are $497,000, net operating income is $39,760, and average operating assets are $135,000. What is the company's return on investment (ROI) ? BR Company has a contribution margin of 8%.
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