Question

Blaser Corporation had $275,000 in invested assets, sales of $330,000, income from operations amounting to $33,000 and a desired minimum rate of return of 7.5%. The rate of return on investment for Blaser Corporation is____-

Answer 1

Answer:

The rate of return on investment is $20,625

Explanation:

The question is asking you to convert the percentage return on investment into actual amount. And this is done as shown below:

Invested amount = $275,000

percentage rate of return on investment = 7.5% = 75/100 = 0.75

Therefore, the rate of return on investment = 7.5% of invested amount

= 0.75 × 275,000 = $20,625