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24 April, 08:52

Home town grocery has invested in yogurt stands for its stores. the investment cost the company $100,000. variable materials, preparation, and marketing costs are expected to be $.60 a unit and fixed costs are estimated at $6,000 a year. if actual sales were 20,000 servings, what would the roi be at a sales price of $1.70?

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  1. 24 April, 10:26
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    Profit = ($1.7 - $0.6) * 20,000 - $6,000 = $16,000 ROI = ($16,000 - $100,000) / $100,000 = - 0.84
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