Sara Lee Bakeries makes the chocolate brownie pieces used in Ben and Jerry\'s Ch

Question

Sara Lee Bakeries makes the chocolate brownie pieces used in Ben and Jerry's Chocolate Fudge Brownie ice-cream. 11,000 pounds of chocolate brownies were sold every day in 2011. This NJ based social venture 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.The total assets of Sara Lee Bakeries was $10,613,498 and the total liabilities were $699,210

The return on investment (ROI) at Sara Lee when calculated as (Total Revenue - Total Costs ) / Assets is approximately? PLEASE SHOW EACH STEP MANUALLY OR ON AN EXCEL SPREADSHEET

Explanation / Answer

Return on investment = Operating profit / Assets * 100

= 121,351 /  10,613,498 * 100 = 1.14 %...................final answer

Operating profit = sales revenue - total cost = 2244971 - 2123620 = 121351

Assets = 10,613,498 ( given)

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