Question

PLEASE HELP

A company that produces and sells ceramic tiles for $29.61 per square foot has fixed weekly expenses of $7,210 and variable expenses of $14.79 for each square foot of tile. Determine the company's ROI if they are able to sell 1,265 square feet of tile per week. Round the final answer to the nearest hundredth. Show your work. (10 points)

Answer 1

To determine the company's ROI (Return on Investment), we need to know the company's net profit.

First, we need to calculate the total cost of producing and selling 1,265 square feet of tile per week.

Variable expenses: 1,265 square feet x $14.79 per square foot = $18,710.35

Fixed expenses: $7,210 per week

Total costs: $18,710.35 + $7,210 = $25,920.35

Next, we need to calculate the company's revenue from selling 1,265 square feet of tile:

Revenue: 1,265 square feet x $29.61 per square foot = $37,426.65

Finally, we can calculate the net profit:

Net profit: $37,426.65 - $25,920.35 = $11,506.30

To calculate ROI, we need to divide the net profit by the total investment (total costs):

ROI: $11,506.30 / $25,920.35 = 0.443

Therefore, the company's ROI is 0.44 (rounded to the nearest hundredth).