Database Systems is deliberation enlargement in to the brand new product line. Assets to await enlargement will price $500,000. It is estimated which Database can beget $1,200,000 in annual sales, with the 6 percent distinction margin. What would net income as well as lapse upon resources (investment) be for the year?
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{ 1 comment… read it below or add one }
Net income = $1,200,000 x .06 = 72,000
Return on investment = $72,000 / $500,000 = 14.4%