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    Company's return on investment

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    Cindy invested $200,000 into a business that earned a profit of $2,700 during the past month. Cindy believes the business will earn an annual profit equal to 12 times the monthly profit. Assume Cindy wants to take $25,000 from the business each year for her personal use.

    See table:
    Resources created from sales: $19,000
    Resources consumed:

    Materials: $8,000
    Insurance: $2,000
    Rent: $1,500
    Utilities: $1,300
    Wages: $3,500
    Total cost of resources consumed: $16,300
    Profit earned: $2,700

    a. Determine the company's return on investment.
    b.Determine Cindy's return of investment.

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    https://brainmass.com/business/accounting/companys-return-investment-299175

    Solution Preview

    Cindy invested $200,000 into a business that earned a profit of $2,700 during the past month. Cindy believes the business will earn an annual profit equal to 12 times the monthly profit. Assume Cindy wants to take $25,000 from the business each ...

    Solution Summary

    Response provides the steps to compute the company's return on investment

    $2.19

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