Based on the amount spent on producing the products, and the expenses to advertise, the Return on Investment is 50%.
What is the return on investment?
This refers to a percentage that shows how much a company gained from selling a product that they made or acquired for sale.
It is calculated as:
= Net income / Cost
Revenue here is:
= 300 x 20
= $6,000
The cost is:
= (5 x 300) + 2,500
= 1,500 + 2,500
= $4,000
Net income:
= 6,000 - 4,000
=$2,000
Return on investment is:
= 2,000 / 4,000
= 50%
In conclusion, the return on investment can be found to be 50%.
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