Clare sells gourmet boxes of chocolates. One box of chocolates costs Nancy $6.75 to produce. She sells her boxes of chocolate for $10.00. What is Clare's return on investment (ROI)?

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Multiple Choice

Clare sells gourmet boxes of chocolates. One box of chocolates costs Nancy $6.75 to produce. She sells her boxes of chocolate for $10.00. What is Clare's return on investment (ROI)?

Explanation:
Return on investment measures how much profit you make per unit relative to the cost of that unit. For one box, profit is selling price minus production cost: 10.00 − 6.75 = 3.25 dollars. ROI is this profit divided by the cost: 3.25 / 6.75 ≈ 0.4815, which is about 48%. So the box yields roughly a 48% return on investment. Nearby percentages like 46%, 45%, or 47% would correspond to slightly different profit-to-cost ratios, but the exact calculation rounds to 48%.

Return on investment measures how much profit you make per unit relative to the cost of that unit. For one box, profit is selling price minus production cost: 10.00 − 6.75 = 3.25 dollars. ROI is this profit divided by the cost: 3.25 / 6.75 ≈ 0.4815, which is about 48%. So the box yields roughly a 48% return on investment. Nearby percentages like 46%, 45%, or 47% would correspond to slightly different profit-to-cost ratios, but the exact calculation rounds to 48%.

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