Question

Campbell Candy Corporation desires a 14% return on investment (ROI) on all operations. The following information was available for the company for the current year: Sales $ 14,000 Operating income $ 4,000 Turnover 0.5 What is the corporation's ROI? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Multiple Choice
A. 28.57%
B. 22.57%
C. 14.29%
D. Impossible to determine from the information given.

Answer 1

Answer:

D. Impossible to determine from the information given.

Explanation:

ROI (return on investment) = (current value of investment – cost of investment)/ cost of investment

In this case, we don’t have any information of the investment and its value, except the expected ROI of company

In conclusion, we can’t define actual ROI for this case with such information.