The following information pertains to three divisions of Marine Industrial Coatings, Inc. (amounts in millions):

-What is the Return on Sales for the Retail paint division?
A)2%
B)4.5%
C)20%
D)45%

Question

The following information pertains to three divisions of Marine Industrial Coatings, Inc. (amounts in millions):
 
-What is the Return on Sales for the Retail paint division?
A)2% 
B)4.5% 
C)20% 
D)45%

Quizplus · Accepted Answer

Return on Sales (ROS) is calculated as Operating Profit divided by Sales. If the Operating Profit for the Retail paint division is $2 million and Sales are $10 million, then ROS = ($2 million / $10 million) * 100 = 20%.

The Following Information Pertains to Three Divisions of Marine Industrial