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Concept introduction:
The Return on Investment is also called ROI. The return means the profit you make as a result of your investments. Return on Investment is a performance measure used to evaluate the profitability or efficiency of an investments or compare the efficiency of a number of investments. ROI is generally defined as the ratio of net profit over the total cost of the investment. ROI is calculated by dividing the net income by the total cost of the investment.
The table showing the relation between sales and return on investment
2
Concept introduction:
Return on investment:
The Return on Investment is also called ROI. The return means the profit you make as a result of your investments. Return on Investment is a performance measure used to evaluate the profitability or efficiency of an investments or compare the efficiency of a number of investments. ROI is generally defined as the ratio of net profit over the total cost of the investment. ROI is calculated by dividing the net income by the total cost of the investment.
What happened to the company’s return on investment as sales increase
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Chapter 11 Solutions
MANAGERIAL ACCOUNTING ACCESS CARD
- Helparrow_forwardDuring the current year, a business sells equipment for $440,000. The equipment cost $290,000 when purchased and placed in service two years ago and $85,000 of depreciation deductions were allowed. The results of the sale are ____. OPTIONS: A) Ordinary income of $85,000 and Sec. 1231 gain of $150,000. B) Sec. 1231 gain of $120,000. C) Ordinary income of $90,000 and LTCL of $30,000. D) Ordinary income of $120,000.arrow_forwardPlease give me true answer this financial accounting questionarrow_forward
- General Accountingarrow_forwardProvide correct answer this financial accounting questionarrow_forwardQuestion: A company sells goods on credit. On one sale, they sold it for $20,000 and offered a 2/10, net/30 payment option. Two days after the sale, the customer complained and they allowed them a $1,000 sales allowance. The customer paid the net amount within 8 days after the sale. The cash proceeds received by the seller are? A. $20,000 B. $19,000 C. $18,600 D. $18,620arrow_forward
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