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What is the formulla of ROI?
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Answer Posted / pavan kumar
Return on Investment means how much earning from the
investment of business.
ROI in Percentage = Net profit/Investment*100 .
ROI in Rupees =Net Profit/investment.
Net Profit=Gross profit- Interest.
Investment=Initial Investment for the business
Grossprofit=Turnover–Sales stock purchase value OR Margin %
on sale.
Turnover= Total Sales for the period of time.
Investment= Initial investment for the business (Fixed costs
and Variable costs)
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