Dantone,Inc Calculate the Return on Investment

question 163

Multiple Choice

Dantone,Inc.provides the following information: $$\begin{array} { | l | l | } \hline \text { Profit margin ratio } & 7 \% \\\hline \text { Asset turnover ratio } & 2 \text { times } \\\hline \text { Net sales } & \$ 500,000 \\\hline \text { Target rate of return } & 3 \% \\\hline\end{array}$$ Calculate the return on investment.

• A) 14%
• B) 56%
• C) 1%
• D) 15%

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Definitions:

Demand And Supply Diagram

A graphical representation used to show the relationship between the demand for a product and its supply, illustrating equilibrium price and quantity.

Efficiency Loss

Refers to the decrease in economic efficiency that can occur when equilibrium for a good or a service is not achieved, often due to market failure or intervention.

Health Insurance

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Deductibles

The amount paid out of pocket by the policyholder before an insurance company will pay any expenses.