Calculate the return on capital employed (ROI) from the following information:

Capital employed is 1,00,000

Net profit on sales is 6%

Gross Profit Margin 90,000 (15%)

13%

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28%

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36%

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20%

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Solution

The correct option is C
36%

Revenue from operations = 90,000/15% = 6,00,000

Net profit = 6,00,0006% = 36000

ROI= (36,000/1,00,000)100 = 36%

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Calculate the return on capital employed (ROI) from the following information: Capital employed is 1,00,000 Net profit on sales is 6% Gross Profit Margin 90,000 (15%)

The correct option is C 36% Revenue from operations = 90,000/15% = 6,00,000 Net profit = 6,00,000*6% = 36000 ROI= (36,000/1,00,000)*100 = 36%

Calculate the return on capital employed (ROI) from the following information:

Capital employed is 1,00,000

Net profit on sales is 6%

Gross Profit Margin 90,000 (15%)

The correct option is C
36%

Revenue from operations = 90,000/15% = 6,00,000

Net profit = 6,00,0006% = 36000

ROI= (36,000/1,00,000)100 = 36%