Let’s contend 4000 was paid out in salaries though 32,000 was brought in by brand new income as well as 7000 of which was pristine profit. What would the ROI be in this case?
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Tagged as: $4000, 7000, Investment, Return, What's
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The I in ROI is investment. Was the $4,000 you Investment?
If so, using ROI = return / Investment, then,
7000 / 4000
175% return on Investment.
There was $25000 in costs to generate $7000 profit, how has that been accounted for in the Investment figure?
Profit margin = profit / sales
7000 / 32000
21.8% profit margin