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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)?

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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)?

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)?

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TabithaProfessional · Tutor for 6 years

Answer

### \(\text{ROI} = 48.15\%\)

Explain

## Step 1: Identify the cost<br />### Identify the production cost per box of chocolates: \(\$6.75 \).<br /><br />## Step 2: Identify the revenue<br />### Identify the selling price per box of chocolates: \( \$10.00 \).<br /><br />## Step 3: Calculate the profit per box<br />### Subtract the production cost from the selling price:<br />\[ \text{Profit} = \$10.00 - \$6.75 \]<br /><br />## Step 4: Calculate the ROI<br />### Use the ROI formula:<br />\[ \text{ROI} = \frac{\text{Profit}}{\text{Cost}} \times 100 \]<br />Substitute the values:<br />\[ \text{ROI} = \frac{\$10.00 - \$6.75}{\$6.75} \times 100 \]
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