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 ROI for Blaser Corporation is

Return on Investment (ROI) = 10%

Explanation:

Return on Investment (ROI) is the proportion of operating assets that earned as profit by a business entity.

It is determined by dividing the operating income by operating assets.

ROI is used to evaluate the performance of a business entity by comparing the entity's ROI to the opportunity cost of capital.

The opportunity cost of capital is the minimum rate of return that would be make Blaser corporation to be indifferent between investing the money in its business and an alternative investment outlet.

ROI = Operating income /Operating assets × 100

    = 33,000/330,000  × 100= 10%

Return on Investment (ROI) = 10%

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