Your organization has a gross sales of $40 million, and you have 100 employees. What is the maximum amount of loss in dollars you can afford so your cybersecurity return on investment (ROI) is one (1) for a year?(1 point)

Question

Responses

$400,000

$328,000

$300,000

$50,000

Answer 1

To calculate the maximum amount of loss in dollars you can afford, you need to determine the percentage of profit margin that you are willing to keep as an acceptable loss. The cybersecurity return on investment (ROI) formula is:

ROI = (Gross Sales - Loss) / Investment

Since you want the ROI to be 1, the formula becomes:

1 = (40,000,000 - Loss) / Investment

To find the maximum loss, you need to know the investment amount. If we assume it to be equal to the gross sales ($40 million), we can rearrange the formula to solve for the Loss:

Loss = Gross Sales - (ROI * Investment)

Since ROI is 1 and Investment is $40 million:

Loss = 40,000,000 - (1 * 40,000,000) = 0

Therefore, the maximum amount of loss in dollars you can afford for a year to achieve an ROI of 1 is $0.