The bakery had a total annual revenue of $2,244,971 in 2011. Its total expenses

Question

The bakery had a total annual revenue of $2,244,971 in 2011. Its total expenses were $ 2,123,620 while the variable cost to produce the chocolate brownie pieces was $897,981. If the total assets of Sara Lee Bakeries was $10,613,498 and the total liabilities were $699,210 then the equity balance for 2011 was:

The return on investment [ROI] at Sara Lee when calculated as (Total Revenue - Total Costs ) / Assets is approximately. PLEASE SHOW WORK FOR ONE OF THE CORRECT ANSWERS BELOW:

15 %

1.1 %

0.1 %

3.5 %

Explanation / Answer

Ans : Option B: 1.1 %

Solution: Return on investment = Net Income/ Asset

                                             = (2,244,971-2,123,620)/10,613,498

                                             = 1.1 %

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