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Ansuman Mohanty is owner of Hero motorbike showroom in Bhubaneswar along with an associated Hero service center. He has four revenue sources for this business.

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Ansuman Mohanty is owner of Hero motorbike showroom in Bhubaneswar along with an associated Hero service center. He has four revenue sources for this business. First is from the walk-in customers who visit the showroom to buy motorbikes. The average selling price of a motorbike is Rs 85,500 and he earns a margin of 7.5% on sale of each motorbike to a walk-in customer. His average monthly motorbike sale is 215 units. His second source of revenue is by selling motorbikes to sub-dealers present in rural geographies on the outskirts of Bhubaneswar. His margin is lower on these sales at 6% since it is channel sales and not retail sales. The average selling price of Hero motorbikes sold to sub-dealers is also slightly lower at Rs 65,000. He sells nearly 175 motorbike units every month to sub-dealers. He also earns a monthly revenue of Rs 450,000 from his Hero service center by servicing the motorbikes at a significantly high margin of 30%. Finally, Ansuman also insures 150 motorbikes every month out of the 215 that he sells. He makes Rs5,500-/- on every motorbike that he insures as a commission from insurance company. To ensure smooth business operations, Ansuman employs 3 salespersons, 1 sales manager in Hero showroom. He also has 5 mechanics, and 1 workshop manager in Hero service center. His salesperson salary expenses include salary of 3 salespersons at an average salary of Rs 20,000 per person per month and 1 senior sales manager salary at Rs 30,000 per month. The 5 mechanics in the service center receive an average salary of Rs 15,000 per month whereas the lone workshop manager earns a monthly salary of Rs 25,000. Ansuman also has an accountant and a computer operator to manage backend administrative operations of the business. The accountant earns Rs 15,000 monthly whereas computer operator takes home Rs 8,000 as his monthly salary. The other administrative expenses include printer, stationary, telephone, internet, electricity and running of computers which put together cost AnsumanRs 15,000 per month. He maintains a stock of 150 motorbikes with an average cost price of Rs70,000. His cash on hand investment is Rs 350,000. His security deposit with Hero is Rs 800,000. His total investment in machineries and furniture is Rs 500,000. Based on this given information, calculate Return-on-Investment for complete Hero motorbikes business owned by Ansuman

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