Question
Clare sells gourmet boxes of chocolates. One box of chocolates costs Nancy 6.75 to produce. She sells her boxes of chocolate for 10.00 . What is Clare's return on investment (ROI)? 0000 47 % 48 % 45 % 46 %
Answer
4.6
(219 Votes)
Zoe
Elite · Tutor for 8 years
Answer
D
Explanation
Return on Investment (ROI) is a performance measure used to evaluate the efficiency, or profitability, of an investment or to compare the efficiency of a number of different investments. ROI is expressed as a percentage and is typically used for financial decisions, to compare companies' profitability, or getting a fast overview of different investments. In this case, Clare's initial cost (investment) was
10.00 - effectively our 'Selling Price'. We can the/application of the formula for Return On Investment:ROI = ((Selling Price - Cost Price) / Cost Price ) * 100 %.