Question

​Dantone,Inc.provides the following​ information:________________________________. Profit margin ratio 7​% Asset turnover ratio 2 times Net sales $450,000 Target rate of return 9​% Calculate the return on investment.

A) 4%
B) 45%
C) 10%
D) 14%

Answer 1

D) 14%

Step-by-step explanation:

The return on investment (ROI) is a ratio that measures the net profit generated by an investment over the total cost of the investment.

you can calculate the return on investment by multiplying the profit margin ration by the asset turnover ratio = 7% x 2 = 14%