ROI Formula:

ROI=(Total Profit / Total Investment)×100

Projected Example:

• Selling Price per Sneaker: CAD 130
  
  

• Total Cost (Production + Shipping + Marketing per unit): CAD 35 (avg)
  
  

• Profit per Unit: CAD 95
  
  

• Units Sold in Year 1 (conservative estimate): 1,000
  
  

Year 1 Total Revenue: 1,000 × 130 = CAD 130,000
Year 1 Total Cost: 1,000 × 35 = CAD 35,000 + CAD 25,000 (marketing) = CAD 60,000

ROI =(gain from Investment - Cost of investment / cost of investment)*100

ROI = (130,000 - 60,000)/(60,000)*100 = 116.6%

Interpretation:
An ROI of 116.6% in the first year suggests that Sanjo would more than double its initial investment, making this a financially promising move—especially for a small-scale market test.