What is the marketing return on sales (marketing ROS)for a product line that generates $40 million in sales revenues with a net marketing contribution of $32 million ?
A)75%
B)80%
C)100%
D)125%
E)150%

Question

Quizplus · Accepted Answer

To calculate marketing ROS, we divide the net marketing contribution by the sales revenue and multiply by 100 to get a percentage:

ROS = (net marketing contribution / sales revenue) x 100

ROS = ($32 million / $40 million) x 100

ROS = 0.8 x 100

ROS = 80%

Therefore, the marketing ROS for this product line is 80%. The best choice is B.

What Is the Marketing Return on Sales (Marketing ROS)for a Product