Question

Tempest Enterprises had a sales margin of 5%, sales of $4,000,000, and invested capital of $5,000,000. The company's ROI was:_______

a. 16.00%.
b. 4.00%.
c. 25.00%.
d. 6.25%.
e. None of the answers is correct.

Answer 1

b. . 4.00%.

Step-by-step explanation:

Calculation for The company's ROI

ROI=(5% x $4,000,000) / $5,000,000

ROI=$200,000/$5,000,000

ROI = 4.00%

Therefore The company's ROI was: 4.00%