Company A’s revenues are $300 on invested capital of $240 - 9712

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Company A’s revenues are $300 on invested capital of $240. Expenses are currently 70% of sales. If Angelo Company can reduce its capital investment by 20% in Company A, return on investment will be _____. 

A.   75%

B.   93.75%

C.   18.75%

D.   46.88% 

Solution Description

Company A’s revenues are $300 on invested capital of $240. Expenses are currently 70% of sales. If Angelo Company can reduce its capital investment by 20% in Company A, return on investment will be _____.