Danny sells skateboards. One skateboard sells for $55, and the cost to produce a skateboard is $35. What is Danny's return on investment (RO)?

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Multiple Choice

Danny sells skateboards. One skateboard sells for $55, and the cost to produce a skateboard is $35. What is Danny's return on investment (RO)?

Explanation:
ROI measures how much profit you earn for each dollar invested. For one skateboard, revenue is $55 and the production cost is $35, so the profit is 55 − 35 = $20. ROI is profit divided by cost, which is 20 ÷ 35 ≈ 0.5714, or about 57%. So the return on investment is roughly 57%.

ROI measures how much profit you earn for each dollar invested. For one skateboard, revenue is $55 and the production cost is $35, so the profit is 55 − 35 = $20. ROI is profit divided by cost, which is 20 ÷ 35 ≈ 0.5714, or about 57%. So the return on investment is roughly 57%.

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