Using the Following Information, Calculate the Return on Investment

question 36

Multiple Choice

Using the following information, calculate the return on investment.
Sales $100 000
Operating profit $6000
Profit margin 8%
Equity $25 000
Minimum required rate of return 10%
Turnover of assets 1.5 times p.a.

• A) 10%
• B) 22%
• C) 8%
• D) 12%

---

Definitions:

Online Advertising

The practice of using internet-based platforms to promote products, services, or brands to potential customers.

Degree of Digitization

The extent to which digital technology is integrated into the operations, products, or services of an entity.

Delivery Agent

An individual or company that is responsible for delivering goods from one place to another.

Reverse Auction

A type of auction in which the roles of buyer and seller are reversed, with sellers competing to obtain business from the buyer by offering the lowest price.