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Return on investment equals: POSSIBLE ANSWERS: profit x assets - S inventory x sales -- - sales assets assets + inventory C sales profit x sales -- sales x assets

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Answer #1

ROI = NET PROFIT/INVESTMENT = NET PROFIT/TOTAL ASSETS

SO FROM GIVEN OPTIONS,

THE APPROPRIATE ANSWER IS : LAST OPTION : (PROFIT X SALES) DIVIDED BY (SALES X ASSETS)

ROI = (PROFIT X SALES)/ (SALES X ASSETS) = PROFIT/SALES X SALES/ASSETS

ROI = PROFIT MARGIN X ASSET TURNOVER

ANSWER : LAST OPTION : (PROFIT X SALES) DIVIDED BY (SALES X ASSETS) (THUMBS UP PLEASE)

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