Question

Mr. Smith started his own business making sweatshirts. It costs him $15 for the sweatshirt, $3 for the designs, and $.50 for delivery. If he sells the sweatshirts for $26 in his store, what is the return on investment on each sweatshirt?

Answer 1

$7.5 is the ROI on each sweatshirt

Explanation:

In this question, we are asked to calculate ROI for a businessman who sells sweatshirts.

To calculate the profit we need to subtract the total cost incurred form manufacture to delivery and subtract bogus from the cost at which he sells the shirts.

Mathematically let’s calculate the cost from production to delivery.

That would be ;

$15 + $3 + $0.5 = $18.5

sales price is $26

His ROI will be $26 - $18.5 = $7.5