Question

Blaser Corporation had $275,000 in invested assets, sales of $330,000, income from operations amounting to $33,000, and a desired minimum return of 7.5%.

The return on investment for Blaser Corporation is _____.

Answer 1

Answer: 12%

Step-by-step explanation:

GIVEN THE FOLLOWING ;

Investment on asset = $275,000

Earning/ Net profit = $33,000

Minimum return = 7.5%

Return on investment is an accounting metric used to measure the ratio of profit or loss enjoyed on a certain investment to the total amount invested expressed as a percentage.

Return On Investment(ROI) = (Net profit ÷ Invested amount) × 100

Return On Investment = ( $33,000 ÷

$275,000) × 100

ROI = 0.12 × 100 = 12%

Answer 2

The return on investment for Blaser Corporation is 12 %

Step-by-step explanation:

Return On Investment measures the firm`s overall effectiveness in generating profits.

Return On Investment = Earnings / Invested Capital

= $33,000 / $275,000

= 12 %

The Return On Investment is higher than the desired minimum return of 7.5% thus the firm is being effective in generating profits