Using the ROI formula, what is the ROI if sales generated are 1200 and money invested is 800?

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Multiple Choice

Using the ROI formula, what is the ROI if sales generated are 1200 and money invested is 800?

Explanation:
ROI measures how much profit is earned for each unit of money invested, shown as a percentage. Using the formula: ROI = (Net Profit / Cost of Investment) × 100, where Net Profit is sales minus investment, we have 1200 − 800 = 400. Then ROI = (400 / 800) × 100 = 50%. So the best answer is 50%. The other options would require different profit amounts (200 for 25%, 600 for 75%, 800 for 100%), which don’t match 1200 in sales against 800 invested.

ROI measures how much profit is earned for each unit of money invested, shown as a percentage. Using the formula: ROI = (Net Profit / Cost of Investment) × 100, where Net Profit is sales minus investment, we have 1200 − 800 = 400. Then ROI = (400 / 800) × 100 = 50%. So the best answer is 50%. The other options would require different profit amounts (200 for 25%, 600 for 75%, 800 for 100%), which don’t match 1200 in sales against 800 invested.

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