Answer :
Answer:
The return on investment for Blaser Corporation is 12 %
Explanation:
Return On Investment measures the firm`s overall effectiveness in generating profits.
Return On Investment = Earnings / Invested Capital
= $33,000 / $275,000
= 12 %
The Return On Investment is higher than the desired minimum return of 7.5% thus the firm is being effective in generating profits
Answer: 12%
Explanation:
GIVEN THE FOLLOWING ;
Investment on asset = $275,000
Earning/ Net profit = $33,000
Minimum return = 7.5%
Return on investment is an accounting metric used to measure the ratio of profit or loss enjoyed on a certain investment to the total amount invested expressed as a percentage.
Return On Investment(ROI) = (Net profit ÷ Invested amount) × 100
Return On Investment = ( $33,000 ÷
$275,000) × 100
ROI = 0.12 × 100 = 12%