The following information is available for the Hodge Podge Company: $$\begin{array} { l l }
\text { Sales } & \$ 250,000 \
\text { Invested capital } & 156,250 \
\text { ROI } & 10 \%
\end{array}$$ The return on sales is:
A) 6.25%
B) 62.50%
C) 10.00%
D) None of these answers is correct.

Question

The following information is available for the Hodge Podge Company: $$\begin{array} { l l } 
\text { Sales } & \$ 250,000 \
\text { Invested capital } & 156,250 \
\text { ROI } & 10 \%
\end{array}$$ The return on sales is:
A) 6.25%
B) 62.50%
C) 10.00%
D) None of these answers is correct.

Quizplus · Accepted Answer

The return on sales (ROS) is calculated by dividing net income by sales. Given ROI = 10% and invested capital = $156,250, net income = 10% of $156,250 = $15,625. ROS = $15,625 / $250,000 = 6.25%.

The Following Information Is Available for the Hodge Podge Company Sales $250,000 Invested capital 156,250 ROI 10%\begin{array} { l l } \text { Sales } & \$ 250,000 \\\text { Invested capital } & 156,250 \\\text { ROI } & 10 \%\end{array} Sales Invested capital ROI ​$250,000156,25010%​

The Following Information Is Available for the Hodge Podge Company $\begin{array} { l l } \text { Sales } & \$ 250,000 \\\text { Invested capital } & 156,250 \\\text { ROI } & 10 \%\end{array}$