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Question

Return on Investment (ROI) = ____________.

A
Net Income/Sales X Investment/Sales
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B
Net Income/Sales X Sales/Investement
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C
Sales/Net Income X Sales/Investment
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D
Sales/Net Income/Investment/Sales
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Solution

The correct option is B Net Income/Sales X Sales/Investement
Return on Investment = Net Income/Sales X Sales/Investment.
Return on investment (ROI) can be defined as a financial metric of profitability. It is widely used to measure the return or gain from an investment. In simple terms, ROI is a simple ratio of the gain from an investment relative to its cost.

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