The following information is available for the Copeland Company: $\begin{array}{ll}
\text { Sales } & \$ 1,000,000 \
\text { Invested c apital } & 312,500 \
\text { ROI } & 10 \%
\end{array}$ The return on sales is:
A) 1.000%
B) 3.125%
C) 10.000%
D) None of these answers is correct.

Question

Quizplus · Accepted Answer

Return on sales (ROS) is calculated as ROI divided by the turnover ratio (Sales/Invested Capital). Here, ROI is 10%, and the turnover ratio is $ \frac{1,000,000}{312,500} = 3.2 $. Thus, ROS = $ \frac{10\%}{3.2} = 3.125\% $.

The Following Information Is Available for the Copeland Company Sales $1,000,000 Invested c apital 312,500 ROI 10%\begin{array}{ll}\text { Sales } & \$ 1,000,000 \\\text { Invested c apital } & 312,500 \\\text { ROI } & 10 \%\end{array} Sales Invested c apital ROI ​$1,000,000312,50010%​

The Following Information Is Available for the Copeland Company $\begin{array}{ll}\text { Sales } & \$ 1,000,000 \\\text { Invested c apital } & 312,500 \\\text { ROI } & 10 \%\end{array}$