Carey, Inc. provides the following information

Profit margin ratio 5%
Asset turnover ratio 2 times
Net sales $450,000
Target rate of return 9%

Calculate the return on investment.
A) 10%
B) 45%
C) 4%
D) 14%


A .A)
ROI = Profit margin ratio x Asset turnover ratio
ROI = 5% x 2.00 = 10%

Business

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